THE  LIBRARY 

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THE  UNIVERSITY 

OF  CALIFORNIA 

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Dr.  Gordon  S.  Watkins 


'UBRARY 

JHpsrnr  OF 


UNIVERSITY  OF  ILLINOIS  STUDIES 

IN  THE 
SOCIAL  SCIENCES 


VOL.  VIII 


DECEMBER,  1919 


No.  4 


LABOR  PROBLEMS  AND  LABOR  ADMINIS- 
TRATION IN  THE  UNITED  STATES 
DURING  THE  WORLD  WAR 


BY 

GORDON  S.  WATKINS 

Assistant  Professor  of  Economics 

University  of  Illinois 


PRICE  si. oo 


PUBLISHED  BY  THE  UNIVERSITY  OP  ILLINOIS 
URBANA 

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(Continued  on  page  four  of  cover) 


UNIVERSITY  OF  ILLINOIS  STUDIES 

IN  THE 

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VOL.  VIII  DECEMBER,  1919  No.  4 


BOARD  OF  EDITORS  : 

ERNEST  L.  BOGART  JOHN  A.  FAIRLJE 

LAURENCE  M.  LARSON 


PUBLISHED  BY  THE  UNIVERSITY  OF  ILLINOIS 

UNDER  THE  AUSPICES  OF  THE  GRADUATE  SCHOOL 

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COPYRIGHT,  1920 
BY  THE  UNIVERSITY  OF  ILLINOIS 


Labor  Problems  and  Labor  Admin 

istration  in  the  United  States 

During  the  World  War 

By 
GORDON  S.  WATKINS,  PH.D. 

Assistant  Professor  of  Economics 
University  of  Illinois 


PART  II 

The  Development  of  War  Labor  Administration 


•55- 


CHAPTEE  V 

DECENTRALIZED  LABOR  ADMINISTRATION 

At  the  time  of  its  entry  into  the  great  war  the  United  States 
did  not  possess  adequate  executive,  administrative,  and  judicial 
machinery  for  dealing  with  the  numerous  labor  problems  that 
such  an  emergency  is  likely  to  uncover.  Consequently  we  were 
forced  to  learn  by  the  slow  method  of  experience,  which  at  fre- 
quent intervals  proved  costly.  The  development  of  our  war 
labor  administration  constitutes  one  of  the  most  interesting  chap- 
ters in  the  history  of  our  industrial  reorganization  for  war. 
Characterized  during  the  first  year  of  our  active  participation  in 
the  great  struggle  by  a  series  of  mistaken  efforts  and  a  groping 
in  the  darkness  after  some  solution  for  the  perplexing  and  in- 
creasingly threatening  labor  situation,  the  war  labor  administra- 
tion of  the  United  States  finally  crystallized  into  a  centralized 
and  coordinated  system.  Differentiated  administration,  how- 
ever, was  replaced  by  centralized  administration  only  after  the 
labor  situation  threatened  a  complete  breakdown  of  the  national 
war  program. 

The  spread  of  industrial  unrest  following  our  entry  into  the 
war  revealed  the  utter  inadequacy  of  existing  labor  administra- 
tive machinery  to  cope  successfully  with  the  problem.  This  sit- 
uation was  attributed  to  the  fact  that  the  functions  of  the  De- 
partment of  Labor  were  limited  by  statute  and  incidentally  by 
appropriations ;  also  because  each  production  department  of  the 
government  assumed  the  administration  of  labor  conditions  aris- 
ing in  connection  with  its  own  industrial  projects.  Labor  dis- 
putes, dislocation  of  the  labor  supply,  lack  of  standardization  of 
wages,  inadequate  housing  and  transportation  facilities,  labor 
turnover,  etc.,  were  commanding  attention.  The  Department 
of  Labor  was  using  its  facilities  to  the  utmost,  and  each  of 
the  production  departments  of  the  government  was  attempting 
to  devise  its  own  ways  and  means  of  handling  its  own  problems. 
Thus  there  was  evolved  a  decentralized  labor  administration 

123 


124  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [338 

which  obtained  throughout  the  first  year  of  our  active  partici- 
pation in  the  war.  Closer  examination  of  the  prevailing  situa- 
tion will  show  the  extent  of  this  decentralization. 

1.    PREEXISTING  AGENCIES 

Prior  to  the  outbreak  of  the  war  two  national  government 
agencies  were  functioning  in  the  adjustment  of  industrial  griev- 
ances —  the  United  States  Board  of  Mediation  and  Conciliation, 
and  the  Division  of  Conciliation  of  the  Department  of  Labor. 
In  addition  the  Department  of  Labor  was  attempting,  through 
the  Bureau  of  Immigration  and  the  Post  Office,  to  solve  the  prob- 
lems of  employment  and  unemployment. 

The  United  States  Board  of  Mediation  and  Conciliation  was 
one  of  several  attempts  to  discover  some  means  of  adjusting  the 
recurrent  controversies  between  common  carriers  in  interstate 
commerce  and  their  employees.  Legislation  for  this  purpose  was 
comprised  in  a  series  of  acts,  beginning  with  the  act  of  1888,  and 
including  the  act  of  1898,  known  as  the  Erdman  act,  the  act  of 
1913,  known  as  the  Newlands  act,  and  Section  8  of  an  act  passed 
in  1913  which  created  the  Department  of  Labor.  The  act  of  1888 
provided,  on  the  initiative  of  the  President  of  the  United  States, 
for  voluntary  arbitration,  compulsory  investigation,  and  publi- 
cation of  the  decision.  This  act  was  on  the  statute  books  for  ten 
years,  and  there  is  no  record  of  its  application  as  a  source  of 
arbitration.  This  law  was  superseded  by  the  Erdman  act  of 
1898.1  Under  the  provisions  of  this  act  the  chairman  of  the  Inter- 
state Commerce  Commission  and  the  Commissioner  of  Labor 
were  required,  on  application  of  either  party  to  the  controversy, 
to  endeavor  to  adjust  the  difficulty  by  mediation.  During  the 
first  eight  years  after  the  enactment  of  the  law  only  one  attempt 
was  made  to  apply  it,  and  that  was  not  successful.  Subsequently 
the  provisions  of  the  law  were  frequently  involved.2 

In  July,  1913,  the  Erdman  act  was  superseded  by  the  New- 
lands  act,3  which  provides  for  a  Commissioner  of  Mediation  and 
Conciliation,  to  be  appointed  by  the  President  with  the  advice 
and  consent  of  the  Senate,  the  term  of  the  commissioner's  office 
to  be  seven  years.  The  President  is  also  authorized  to  designate 

1  United  States,  Laws  1898,  C.  370. 

2  Commons  and  Andrews,  Principles  of  Labor  Legislation,  pp.  133-137. 

3  United  States,  Laws  1913,  C.  6. 


339]  DECENTRALIZED  LABOR  ADMINISTRATION  125 

not  more  than  two  other  government  officials,  appointed  with  the 
consent  of  the  Senate,  to  constitute,  with  the  commissioner,  the 
United  States  Board  of  Mediation  and  Conciliation.  An  assistant 
commissioner  is  appointed  in  the  same  way  to  assume  the  duties 
of  the  commissioner  in  case  of  the  latter 's  absence  or  in  the  event 
of  a  vacancy,  and  to  assist  him  in  other  ways.  In  the  case  of  a 
controversy  to  which  the  law  applies  either  party  may  appeal  to 
the  Board  of  Mediation  and  Conciliation,  whose  duty  it  is  to 
seek  to  adjust  the  controversy  by  amicable  methods,  or  failing 
in  mediation,  to  urge  arbitration.  If  disruption  of  traffic  is  im- 
minent and  the  public  interest  endangered  the  board  may  offer 
its  services  as  mediator.  In  case  of  a  dispute  over  the  agreement 
concluded  through  the  efforts  of  the  board,  either  party  may  re- 
quire an  opinion  from  that  body.  If  these  attempts  to  settle  the 
dispute  fail,  a  board  of  arbitration  may  be  organized,  composed 
of  six  or  three  arbitrators.  Each  party  to  the  dispute  chooses 
two  members,  or  one  member,  as  the  case  may  be,  and  these  mem- 
bers select  the  remainder.  In  case  of  the  failure  of  these  initial 
members  to  agree  on  a  third  member  or  members,  the  board 
designates  the  remainder.  Upon  consent  of  both  parties  the 
board  of  arbitration  is  given  powers  of  compulsory  investigation. 
The  award  becomes  operative  in  ten  days  after  filing,  unless 
exception  is  taken  to  a  matter  of  law  upon  the  record.4 

During  the  four  years  ending  June  30,  1917,  the  services  of 
the  Board  of  Mediation  and  Conciliation  were  used  in  seventy- 
one  cases.  Fifty  of  these  were  settled  completely  by  mediation ; 
six  partly  by  mediation  and  partly  by  arbitration ;  eight  wholly 
by  arbitration ;  three  by  the  parties  themselves ;  one  by  con- 
gressional action ;  and  one  remained  unsettled.5 

The  act  of  March  4,  1913,  creating  a  Department  of  Labor, 
provides  that  the  Secretary  of  Labor  shall  have  power  to  act  as 
mediator  and  to  appoint  commissioners  of  conciliation  in  labor 
disputes  whenever  in  his  judgment  the  interests  of  industrial 
peace  may  require  it  to  be  done.0  No  appropriation  was  made 
for  the  expenses  of  the  commissioners  till  October,  1913,  and 
none  for  their  compensation  till  April,  1914.7  The  first  appro- 

4  Commons  and  Andrews,  op.  cit.,  pp.  136,  137. 

s  Willoughby,  W.  F.,  Government  Organization  in  War  Time  and  After, 
p.  204. 

e  United  States,  Laws  1912-1913,  C.  141,  Section  8. 
i  Commons  and  Andrews,  op.  cit.,  p.  137. 


126 


DEVELOPMENT  OF  WAR  LABOR  LEGISLATION 


[340 


priation  was  $25,000;  for  1915,  $50,000  was  appropriated;  for 
1916,  $75,000 ;  for  1918,  $175,000.8 

The  function  of  the  Mediation  Service  of  the  Department 
of  Labor,  as  it  is  generally  known,  is  diplomatic  rather  than 
judicial.  Its  powers  are  not  mandatory  nor  is  any  disputant 
required  to  accept  its  good  offices.9  In  spite  of  these  limitations, 
the  success  of  the  service  has  been  most  gratifying  both  in  peace 
and  in  war  times,  as  is  indicated  by  the  following  summary  of 
its  work.10 


TABLE  IX.     SHOWING  THE  NUMBER  AND  THE  DISPOSITION  OF  CASES  HAN- 
DLED BY  THE  DIVISION  OF  MEDIATION  AND  CONCILIATION 

OF  THE  DEPARTMENT  OF  LABOR 

March 
4, 1913, 
to  June  Year  ending  June  30, 

30,1914  1915     1916     1917     1918     1919    Total 
33 


' 

'            ' 

Adjusted    

28         26 

178 

248 

865 

1,223    2,568 

Unable  to   adjust  

5        10 

22 

47 

71 

111       266 

Pendinsr   . 

5 

21 

42 

7 

13         88 

Unclassified  

1 

6 

41 

66 

214       328 

National  War  Labor  Board.. 

208 

219       427 

A  necessary  condition  of  the  success  of  the  Division  of  Con- 
ciliation was  the  removal  of  all  suspicion  and  misapprehension 
concerning  the  neutrality  of  the  conciliators  and  the  purpose  and 
policy  of  the  division.  All  such  misapprehension  was  quieted  by 
the  Secretary  of  Labor  in  his  statement  that :  "It  has  been  the 
policy  of  the  Department  of  Labor  not  to  endeavor  to  impose  its 
viewpoint  upon  either  the  worker  or  the  management  in  any 
dispute  that  may  arise,  but  rather  to  find  some  basis  mutually 
acceptable  even  though  it  may  not  be  mutually  satisfactory.  In 
other  words,  the  work  of  mediation  is  not  a  judicial  work ;  it  is 
not  a  judicial  function ;  it  is  not  to  hear  both  sides  and  then  de- 
termine the  rights  and  wrongs  of  the  situation,  or  to  pass  judg- 
ment and  then  enforce  its  decision.  The  work  is  diplomatic 

s  Willoughby,  W.  F.,  op.  cit.,  p.  204. 

8  See  the  Fifth  Annual  Report  of  the  Secretary  of  Labor,  1917,  p.  11. 
10  Compiled  from  the  Seventh  Annual  Report  of  the  Secretary  of  Labor, 
1919,  p.  19. 


341]  DECENTRALIZED  LABOR  ADMINISTRATION  127 

rather  than  judicial,  and  it  is  in  that  spirit  the  problems  of  con- 
ciliation in  labor  controversies  are  approached."  X1 

For  some  years  prior  to  the  war  the  Department  of  Labor  had 
a  service  the  purpose  of  which  was  to  bring  the  manless  job  and 
the  jobless  man  together,  and  to  correlate  as  far  as  possible  the 
employment  services  of  other  political  units.  Section  40  of  the 
Immigration  Act  of  February  20,  1909,  provided  for  the  organ- 
ization within  the  Bureau  of  Immigration,  at  that  time  an  in- 
tegral part  of  the  Department  of  Commerce  and  Labor,  of  a 
Division  of  Information  to  assist  immigrants  and  other  persons 
in  securing  employment.  The  Bureau  of  Immigration,  including 
the  Division  of  Information,  was  made  a  part  of  the  Department 
of  Labor  under  authority  of  the  Act  of  March  4,  1913,  which 
created  the  department.  Upon  its  organization  in  1914,  the 
department  converted  the  Division  of  Information  into  a  gen- 
eral employment  service  to  function  in  the  placement  of  all  kinds 
of  labor.  Sanction  for  this  procedure  was  found  in  the  Act 
creating  the  Division  of  Information,  and  especially  in  Section 
1  of  the  organic  Act  of  March  4,  1913,  providing  for  a  Depart- 
ment of  Labor,  which  stipulated  that :  ' '  The  purpose  of  the 
Department  of  Labor  shall  be  to  foster,  promote,  and  develop  the 
welfare  of  the  wage  earners  of  the  United  States,  to  improve 
their  working  conditions,  and  to  advance  their  opportunities  for 
profitable  employment."12  This  reorganized  employment  ser- 
vice was  called  the  United  States  Employment  Service,  and  it 
functioned  primarily  through  the  Division  of  Information, 
which  had  been  maintained  as  an  integral  part  of  the  Bureau  of 
Immigration. 

The  Employment  Service  mapped  a  more  vigorous  and  general 
program.  The  country  was  divided  into  zones,  and  labor  ex- 
changes were  established  with  sub-branches  in  each.  On  June 
30,  1916,  there  were  20  of  these  zones  with  an  equal  number 
of  labor  exchanges  or  central  offices  and  62  sub-branches.  In 
addition,  the  cooperation  of  the  Post  Office  Department  was 
secured,  which  resulted  in  the  use  of  post  offices  throughout  the 
country  as  branch  agencies  of  the  Employment  Service.  Co- 
operative relations  were  also  established  with  all  state  and 

11  Fifth  Annual  Report  of  tlie  Secretary  of  Labor,  1917,  p.  11. 

12  United  States,  Laws  1912-1913,  C.  141,  Section  1. 


128  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [342 

municipal  employment  bureaus,  the  purpose  being  to  make  the 
federal  service  a  sort  of  clearing  house  and  coordinating  agency. 
At  a  general  conference  between  the  Department  of  Labor  and 
official  employment  services  held  in  1915  it  was  decided  to  organ- 
ize a  joint  advisory  council  or  board  to  promote  closer  relations 
between  all  public  employment  services,  to  correlate  their  work, 
and  for  all  practical  purposes  to  establish  a  national  employment 
system. 

In  1914  the  federal  employment  service  had  assumed  the  obli- 
gation of  providing  farm  labor  to  harvest  the  crops.  This  work 
was  carried  on  in  conjunction  with  the  Department  of  Agricul- 
ture. In  1916  a  women's  and  children's  division  was  created 
for  the  primary  purpose  of  placing  women  and  juveniles  in 
suitable  employment.  The  federal  service  was  functioning  quite 
successfully,  as  is  manifested  by  the  fact  that  during  the  year 
ending  June  30,  1916,  25,640  applications  for  help  were  received, 
requesting  109,771  laborers,  and  184,481  applications  came  from 
workers  seeking  employment,  of  whom  84,953  were  referred  to 
positions  and  75,195  actually  furnished  with  work.13 

2.  LABOR  PROGRAM  OF  THE  COUNCIL  OF  NATIONAL  DEFENSE 
The  facilities  of  the  government  agencies  described  above  were 
utterly  inadequate  to  meet  the  problems  incident  to  a  state  of 
war,  and  it  was  imperative  that  new  agencies  be  created  to  assist 
them.  Even  before  the  United  States  became  involved  in  the  war, 
the  Council  of  National  Defense  had  provided  for  a  committee 
on  labor.  Samuel  Gompers,  chairman  of  this  committee,  called 
the  representatives  of  organized  labor  to  meet  at  Washington  on 
February  28,  1917.  At  this  assembly  resolutions  were  passed 
promising  labor's  support  of  the  government.  A  general  labor 
conference  held  at  Washington  on  March  12,  1917,  also  passed 
resolutions  pledging  to  the  government  the  support  of  organized 
labor  in  the  event  of  war.  On  April  2,  1917,  the  committee  on 
labor  of  the  Council  of  National  Defense  called  a  meeting  of  the 
representatives  of  American  labor  and  other  interests  to  be  held 
in  Washington  for  the  express  purpose  of  organization.  More 
than  150  persons  attended  this  conference,  including  representa- 
tives of  leading  international  unions,  railway  brotherhoods,  em- 
is  Willoughby,  W.  F.,  op.  tit.,  pp.  243-247. 


343]  DECENTRALIZED  LABOR  ADMINISTRATION  129 

ployers,  and  the  general  public,  and  welfare  experts  in  the  lead- 
ing industries.  The  conference  included  a  very  desirable  repre- 
sentation of  the  commercial,  transportation,  financial,  and  civic 
interests  of  the  nation,  and  portended  great  results.  A  unity  of 
purpose  was  developed  among  the  different  groups  represented, 
and  a  permanent  committee  was  selected  with  Samuel  Gompers  as 
chairman.  This  committee  was  composed  of  representatives  of  the 
several  interests  attending  the  conference.  National  committees 
were  also  organized  for  dealing  with  wages  and  hours,  mediation 
and  conciliation,  welfare  work,  women  in  industry,  information 
and  statistics,  cost  of  living,  and  domestic  economy.  At  a  con- 
ference of  state  governors  called  by  the  Council  of  National  De- 
fense in  the  spring  of  1917,  resolutions  were  passed  recommend- 
ing in  the  respective  states  committees  on  labor  similar  in  scope 
and  organization,  to  cooperate  with  the  National  Committee  on 
Labor.14 

Labor  Standards.  A  resolution  adopted  at  a  meeting  of 
the  executive  committee,  Committee  on  Labor,  and  approved  by 
the  Advisory  Commission  and  the  Council,  April  6,  1917,  em- 
bodied a  declaration  of  the  attitude  of  American  workmen  with 
regard  to  the  war.  The  resolution  pointed  out  that  in  order  to 
guarantee  the  defense  and  safety  of  the  nation,  and  to  avoid  con- 
fusion and  facilitate  action  for  national  defense,  the  following 
principles  of  conduct  should  be  accepted:  (1)  Neither  employ- 
ers nor  employees  should  endeavor  to  take  advantage  of  the 
country's  necessities  to  change  existing  standards,  unless  made 
imperative  by  economic  or  other  emergencies,  and  then  only 
after  investigation  and  approval  of  the  Council  of  National  De- 
fense;  (2)  state  legislatures,  and  administrative  officers  charged 
with  the  enforcement  of  labor  and  health  laws  should  make  no 
departure  from  existing  standards  of  health  and  welfare  of 
workers  without  a  declaration  of  the  council  that  such  departure 
was  necessary  and  conduced  to  the  national  defense ;  state  legis- 
latures should  delegate  to  the  governor  of  their  respective  states 
the  power  to  suspend  or  modify  restrictions  of  labor  laws  when 
such  modification  or  suspension  was  requested  by  the  council, 
this  power  to  continue  for  a  definite  period  and  not  longer  than 

14  First  Annual  Eeport  of  the  Council  of  National  Defense,  1917,  pp. 
75,  76. 


130  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [344 

the  duration  of  the  war.15  This  resolution  was  amplified  later  to 
clear  up  some  misunderstanding  which  prevailed  concerning  the 
meaning  of  the  phrase  ' '  no  departure  from  present  standards. ' ' 
The  council  pointed  out  that  unless  deemed  necessary  by  its 
own  action,  the  prevailing  legal  standards  of  hours,  safety,  san- 
itation, child  labor,  and  woman  labor  should  be  maintained  by 
both  employers  and  employees;  that  changes  in  wages  to  meet 
the  changing  cost  of  living  should  be  made  only  after  investiga- 
tion, mediation,  or  arbitration,  and  by  no  means  should  there  be 
recourse  to  stoppage  of  work  until  all  conciliatory  measures  had 
been  exhausted. 

The  Functions  of  the  National  Committees.16  To  deal  with 
the  questions  arising  between  labor  and  capital  the  council 
provided  national  and  divisional  committees.  The  National  Com- 
mittee on  wages  and  hours  was  composed  of  full  representation 
of  labor  organizations  and  capital  to  deal  with  questions  of  hours 
and  wages  during  the  war.  This  committee  assisted  in  incor- 
porating in  government  contracts  the  standards  for  wages  and 
hours  already  established  by  federal  legislation.  The  National 
Committee  on  Mediation  and  Conciliation,  consisting  of  seventy- 
five  members  representing  wage  earners,  employers,  and  the  gen- 
eral public,  with  an  executive  committee  of  five  members,  was 
created,  not  to  arbitrate  disputes  but,  in  every  case  where  con- 
ciliation failed,  to  urge  arbitration,  the  parties  to  the  dispute  to 
select  their  own  arbitrators.  This  committee  was  further  em- 
powered to  cooperate  in  establishing  industrial  peace  when  called 
upon  by  the  Council  of  National  Defense,  its  Advisory  Commis- 
sion, the  Board  of  Federal  Mediators,  the  Commissioners  of 
Mediation  and  Conciliation  of  the  Department  of  Labor,  or  state 
boards  of  conciliation.  Important  service  was  thus  rendered  by 
the  committee  in  the  settlement  of  industrial  grievances  in  vari- 
ous parts  of  the  country,  and  it  removed  many  misunderstand- 
ings in  regard  to  government  contracts.  These  negotiations  in- 
volved many  thousands  of  men,  including  iron  and  steel  workers, 
packing  house  employees,  milling  employees  of  Minnesota,  rail- 
way men,  and  New  England  textile  workers.  A  third  national 
committee  of  major  importance  was  entrusted  with  welfare  work. 

is  ibid. 

!«  For  detailed  account  of  these  committees  see  ibid.,  pp.  79-81. 


345]          DECENTRALIZED  LABOR  ADMINISTRATION          131 

Care  was  taken  of  the  needs  of  workers  during  and  after  work 
hours  by  the  establishment  of  precautionary  measures,  and  safe- 
guards of  health  were  promoted  through  education,  cooperation 
of  churches,  chambers  of  commerce,  fraternal  societies,  employ- 
ers' associations,  and  trades-unions.  Maximum  production  and 
conservation  of  the  health  and  efficiency  of  the  human  machine 
was  the  objective  of  this  committee.17 

Sectional  and  Divisional  Committees.™  In  addition  to  the 
major  committees  described  above,  the  Council  of  National 
Defense  sought  to  establish  a  more  comprehensive  system  of 
labor  administration  by  the  creation  of  divisional  and  sectional 
committees  to  consider  the  following  important  matters:  Pro- 
vision of  sustenance  for  dependents  of  men  in  the  service ;  aid  to 
employers  in  providing  healthful  conditions  in  dangerous  trades 
and  the  creation  of  general  sanitary  conditions  of  employment ; 
a  campaign  of  education  and  advice  relative  to  protection  of 
workers  in  establishments  manufacturing  explosives  and  poison- 
ous products;  formulation  of  a  code  for  factories,  mills,  and 
workships  covering  essentials  for  proper  and  adequate  light,  in- 
tensity of  light  required,  the  shading  of  lamps,  the  distribution 
of  light,  and  so  on;  investigation  regarding  the  conditions  pro- 
ducing industrial  fatigue  and  the  elimination  of  those  condi- 
tions ;  consideration  of  inadequate  and  inoperative  laws  concern- 
ing ventilation  and  heating,  with  a  view  to  suggesting  greater 
care;  provision  for  necessary  and  proper  facilities  for  drinking 
water ;  prevention  and  control  of  occupational  diseases ;  estab- 
lishment and  maintenance  of  desirable  home  nursing  facilities. 
Other  important  matters  to  which  these  divisional  committees 
were  to  give  their  attention  included  the  installation  of  medical 
departments,  or  industrial  health-service  departments  to  care  for 
the  human  factor  in  industry;  training  of  highly  skilled  work- 
men for  such  trades  as  shipbuilding,  as  well  as  training  of  un- 
skilled men,  boys,  and  women  to  supplement  skilled  workmen; 
investigations  and  recommendations  as  to  temporary  or  perma- 
nent housing  facilities ;  organization  of  facilities  and  opportuni- 
ties for  recreation;  public  health  education;  advice  on  the  em- 
ployment of  women  in  order  to  combine  maximum  efficiency  with 

IT  Ibid.,  p.  80. 

18  For  detailed  account  of  these  committees  see  ibid.,  pp.  81-89. 


132  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [346 

conservation  of  health  and  labor  standards;  protection  of  un- 
skilled workers  in  war  industries  against  a  lowering  of  existing 
wage  scales  and  conditions  of  work. 

Labor  Adjustment  Boards.  Early  in  August,  1917,  the 
Council  of  National  Defense  took  a  step  toward  a  practical  solu- 
tion of  the  problem  of  industrial  unrest  by  creating  a  Labor  Ad- 
justment Commission  composed  of  nine  members,  three  repre- 
senting the  government,  three  the  employers,  and  three  the  em- 
ployees. This  commission  was  given  jurisdiction  over  all  dis- 
putes regarding  wages  or  conditions  of  employment  in  establish- 
ments having  government  contracts  in  accordance  with  the  eight- 
hour  law  of  June  19,  1912,  or  March  3,  1913.  The  commission 
was  given  power  to  appoint  labor  adjustment  committees  to  hear 
and  determine  such  disputes  as  the  commission  saw  fit  to  assign 
to  them,  involving  less  than  1,000  workers.  Cases  involving  more 
than  1,000  workers  were  handled  by  the  commission  itself. 
Awards  of  the  commission  or  any  of  the  committees  appointed 
by  it  were  binding  on  employers  and  employees,  and  were  made 
within  thirty  days  after  the  case  had  been  submitted  for  adjudi- 
cation. Decisions  were  for  specified  periods  but  were  not  bind- 
ing longer  than  sixty  days  after  the  end  of  the  war.  At  all 
hearings  both  the  employers  and  the  workers  were  represented. 
Government  contracts  made  under  the  two  acts  cited  above  in- 
clude the  basic  eight-hour  day  for  all  employees,  with  overtime 
rates  at  not  less  than  time  and  one-half  for  all  hours  in  excess 
of  eight.  Whenever  disputes  could  not  be  settled  by  employers 
and  workers  or  their  representatives  in  accordance  with  these 
specifications,  the  Department  of  Labor  was  given  power  on  its 
own  initiative  or  at  the  request  of  employers,  workers,  or  the 
department  whose  contract  was  affected,  to  appoint  a  mediator. 
If  this  mediator  failed  to  adjust  the  dispute  the  case  was  then 
submitted  to  the  Adjustment  Commission  of  the  Council  of  Na- 
tional Defense  for  its  adjudication,  work  always  to  continue 
pending  decision.19 

The  labor  program  of  the  Council  of  National  Defense,  sum- 
marized above,  was  comprehensive  and  anticipated  almost  every 

is  Monthly  Review,  U.  S.  Bureau  of  Labor  Statistics,  September,  1917, 
pp.  71-73. 


347]         DECENTRALIZED  LABOR  ADMINISTRATION          133 

conceivable  problem  that  might  arise.20  Its  main  purpose  was 
to  secure  maximum  production,  and  at  the  same  time  to  safeguard 
the  interests  and  welfare  of  American  workers.  The  weakness 
of  the  program  is  not  difficult  to  discover.  The  multiplicity  of 
committees  were  primarily  investigating,  advisory,  or  educa- 
tional agencies,  possessing  few  if  any  of  the  specific  executive 
and  administrative  powers  that  are  essential  to  successful  labor 
administration.  This  coterie  of  committees,  however,  were  very 
valuable  as  supplementary  agencies  to  the  more  authoritative 
and  powerful  governmental  bodies. 

Labor  Committee  of  the  War  Industries  Board.  Closely 
connected  with  the  labor  program  of  the  Council  of  National 
Defense  was  the  Committee  on  Labor  of  the  War  Industries 
Board.  The  latter  Board  appointed  Mr.  Hugh  Frayne  as  direc- 
tor of  the  Committee  on  Labor,  and  he  handled  the  mediation 
problems  that  arose  within  the  Board's  jurisdiction.  These 
cases,  however,  were  usually  submitted  by  Mr.  Frayne  to  other 
governmental  agencies  of  mediation,  altho  he  personally  made 
some  adjustments  in  an  informal  way.21 

3.  ACTIVITIES  OF  THE  WAR  DEPARTMENT 
Emergency  Construction  Adjustment  Commission.  The 
necessity  of  constructing  in  the  quickest  possible  time  the  six- 
teen cantonments  and  camps  to  house  and  train  the  millions  of 
men  made  available  for  the  army  by  the  selective  draft  law 
entailed  a  serious  labor  problem.  It  was  to  be  expected  that 
contractors  would  proceed  with  the  work  regardless  of  labor 
union  standards.  Results  were  imperative,  and  in  their  eager- 
ness to  achieve  these  results  government  officials  and  contractors 
failed  to  take  into  consideration  the  possible  interference  by 
trades-unions  in  demanding  adherence  to  union  standards.  The 
rapid  spread  of  disputes  and  unrest  soon  forced  attention  to  the 
necessity  of  incorporating  into  government  contracts  for  can- 
tonment construction  definite  stipulations  concerning  standards 
of  wages,  hours,  and  other  conditions  of  employment  that  in- 
volved the  building  trades  unions. 

20  The  committee  on  labor  alone  consisted  of  approximately  500  persons. 
Handbook  of  Information,  Army  Ordnance  Industrial  Service  Section,  Nov. 
1918,  p.  4. 

21  Ibid. 


134  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [348 

The  Secretary  of  War  was  soon  convinced  that  continuous 
production  was  dependent  upon  the  cooperation  of  the  workmen, 
and  that  cooperation  was  obtainable  only  upon  the  grounds  of 
adequate  wages  and  proper  working  conditions.  On  June  19, 
1917,  Secretary  of  War  Baker  and -Samuel  Gompers  signed  a 
memorandum  of  agreement  which  provided  that  the  basic  stand- 
ards of  employment  in  cantonment  construction  should  be  the 
union  scale  of  wages,  hours,  and  conditions  in  force  on  June  1, 
1917,  in  the  locality  where  such  cantonment  is  situated.  Con- 
sideration was  to  be  given  to  special  conditions  requiring  changes 
in  these  standards  subsequent  to  the  above  date.  It  was  further 
provided  that  there  should  be  an  adjustment  commission  for  the 
adjustment  and  control  of  wages,  hours,  and  conditions  of  labor 
in  the  construction  of  cantonments.  This  body,  originally  known 
as  the  Cantonment  Adjustment  Commission  but  later  called  the 
Emergency  Construction  Adjustment  Commission,  consisted  of 
three  persons  appointed  by  the  Secretary  of  War  —  one  to  rep- 
resent the  Army,  one  the  public,  and  one  labor.  The  last  mem- 
ber was  nominated  by  Samuel  Gompers.  All  adjustments  made 
by  the  commission  were  binding  on  all  parties.  The  term  union 
standards  as  used  in  the  agreement  referred  only  to  union  scales 
of  hours  and  wages  and  did  not  include  union  shop.22 

The  procedure  under  the  above  memorandum  provided  that 
(1)  the  commission  should  sit  at  Washington,  unless  ordered  by 
the  Secretary  of  War  to  go  to  the  site  of  construction;  (2)  data 
should  be  secured  relative  to  the  union  scales  of  wages,  hours, 
and  conditions  in  force  on  June  1,  1917,  in  the  several  localities 
where  cantonments  were  being  constructed,  and  through  the  De- 
partment of  Labor  the  data  on  standards  prevailing  in  the  locali- 
ties at  the  time  of  construction;  (3)  for  each  district  a  re- 
sponsible, impartial  examiner  was  to  be  appointed  to  act  under 
orders  of  the  commission;  (4)  in  case  employees  and  the  con- 
tracting officer  failed  to  settle  the  dispute  the  latter  was  author- 
ized to  issue  a  provisional  order  which  was  subject  to  the  affirma- 
tion, revision,  or  readjudication  of  the  Adjustment  Commission ; 
(5)  whenever  this  provisional  order  was  not  accepted,  there  was 
to  be  no  cessation  of  work,  but  details  of  the  dispute  and  order 
were  to  be  sent  to  the  member  of  the  commission  representing 

d.,  Appendix,  No.  3. 


349]         DECENTRALIZED  LABOR  ADMINISTRATION          135 

the  Army,  and  a  report  of  the  matter  was  to  be  secured  by  a 
member  of  the  commission  designated  by  Mr.  Gompers;  (6)  on 
hearing  of  the  failure  to  reach  a  satisfactory  settlement  the  com- 
mission immediately  was  to  dispatch  an  examiner  to  the  site  of 
the  trouble;  (7)  the  examiner  possessed  authority,  under  orders 
of  the  commission,  to  mediate  between  the  parties,  and  in  case 
he  failed  to  effect  a  settlement  he  was  instructed  to  file  a  report 
with  a  recommendation  to  the  commission.  The  rulings  of  the 
commission  were  binding  upon  all  parties  concerned,  notice  of 
the  decision  being  sent  to  the  contracting  officer  and  to  the 
spokesmen  of  the  parties  involved  in  the  dispute.  Application 
of  the  commission's  award  was  supervised  by  the  examiner,  and 
he  saw  to  it  that  hours,  wages,  and  conditions  of  labor  conformed 
to  the  rulings.  The  commission  was  empowered  also  to  make 
additional  regulations  in  order  to  achieve  the  purpose  of  the 
agreement  and  to  decide  all  questions  arising  under  it. 

On  August  8,  1917,  the  construction  of  aviation  fields  was 
placed  under  the  jurisdiction  of  the  above  commission.  On  Sep- 
tember 4,  1917,  the  construction  of  warehouses  and  storage  facil- 
ities was  also  placed  under  the  authority  of  the  same  commission, 
and  on  December  28,  1917,  the  Secretary  of  War  directed  that 
all  construction  work  undertaken  by  the  War  Department  dur-* 
ing  the  war  was  to  be  carried  out  under  the  original  memo- 
randum of  June  9,  1917,  and  the  supplementary  memorandum 
of  July  27,  1917.23  This  wide  extension  of  the  jurisdiction  of 
the  commission  is  indicative  of  the  acceptability  and  effectiveness 
of  its  work.  No  commission  was  confronted  with  more  serious 
problems  and  none  accomplished  its  task  in  a  more  creditable 
manner  than  did  the  Emergency  Construction  Adjustment  Com- 
mission. Much  of  the  commission's  success  was  due  to  the  ap- 
pointment of  special  examiners  to  supervise  the  enforcement  of 
its  awards,  for  these  men  came  in  close  contact  with  the  problems 
at  issue  and  performed  a  good  service  in  maintaining  industrial 
peace. 

General  Orders  of  the  Chief  of  Ordnance  relative  to  Labor 
Conditions.  In  General  Orders  No.  13,  issued  by  the  Chief 
of  Ordnance,  November  15,  1917,  the  attitude  of  the  War  De- 
partment toward  the  labor  problem  was  clearly  set  forth  in  a 


136  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [350 

group  of  fundamental  principles  that  conform  to  the  standards 
generally  endorsed  by  social  reformers  in  the  field  of  labor  wel- 
fare and  legislation.24  The  memorandum  unmistakably  pointed 
out  the  intimate  relation  between  desirable  working  conditions 
and  efficiency  in  production,  and  prescribed  the  following:  (1) 
Daily  hours  of  labor  not  to  exceed  ten,  and  better  efficiency  might 
result  from  an  eight-hour  day;  adjustment  of  hours  to  the  age 
and  sex  of  the  worker  and  the  nature  of  the  employment;  dis- 
couragement of  excessive  overtime,  eight-hour  shifts  being  the 
maximum  in  a  continuous  twenty- four  work-day;  Saturday 
half-holiday  or,  if  necessary,  longer  hours  paid  for  on  the  basis 
of  overtime.  Furthermore,  the  policy  of  resting  one  day  in 
seven  was  recognized,  and  for  the  sake  of  rest  and  relaxation 
national  and  local  holidays  were  to  be  observed.  The  memo- 
randum urged:  (2)  precautions  against  dangers  and  provision 
for  comfort  and  sanitation,  including  good  light,  adequate  venti- 
lation, sufficient  heat,  and  proper  temperature;  (3)  maintenance 
of  existing  wage  standards  in  the  given  industry  and  locality, 
and  reasonable  adjustment  of  wage  scales  to  the  rapidly  chang- 
ing level  of  prices  of  the  necessaries  of  life ;  provision  of  every 
facility  for  the  preservation  of  existing  and  the  creation  of  addi- 
tional methods  for  settling  industrial  controversies.  (5)  There 
was  to  be  restriction  of  the  work  of  women  to  eight  hours,  prohi- 
bition of  night  work,  provision  of  rest  periods,  adequate  time 
and  desirable  place  for  meals,  the  guaranty  of  a  half -holiday  on 
Saturdays,  provision  of  seats  with  backs  and  their  use  permitted 
for  women  workers,  and  a  weight  of  twenty-five  pounds  was  to 
constitute  the  maximum  single  load  lift  for  women  employees. 
When  women  replace  men  tasks  should  be  adapted  to  their 
strength,  and  the  principle  of  equal  pay  for  equal  work  should 
be  applied.  (6)  The  employment  of  children  under  fourteen 
years  of  age  was  prohibited  by  this  order,  and  children  between 
the  ages  of  fourteen  and  sixteen  years  were  not  to  be  employed 
for  more  than  eight  hours  a  day,  or  forty-eight  hours  a  week, 
and  night  work  was  forbidden.  Minors  under  eighteen  years  of 
age  were  to  be  protected  as  to  hours  as  in  the  case  of  women  — 
limited  to  eight  hours  a  day  with  no  night  work.  (7)  No  work 

2*  Similar  orders  were  issued  by  the  Quartermaster  General  on  November 
19,  1917,  known  as  "Circular  No.  18." 


351]  DECENTRALIZED  LABOR  ADMINISTRATION  137 

was  to  be  given  out  to  be  done  in  rooms  used  for  living  purposes 
or  in  rooms  directly  connected  with  living  rooms  in  any  dwelling 
or  tenement.25 

Standards  of  Labor  in  the  Manufacture  of  Army  Cloth- 
ing. On  August  24,  1917,  the  Secretary  of  War  appointed  a 
board  of  control  for  labor  standards  in  the  manufacture  of  army 
clothing.  The  function  of  this  board  was  to  execute  the  regula- 
tions of  the  Quartermaster  General  relative  to  the  ' '  maintenance 
of  sound  industrial  and  sanitary  conditions  in  the  manufacture 
of  army  clothing,  inspect  factories,  see  that  the  proper  standards 
are  established  on  government  work,  pass  upon  industrial  stand- 
ards maintained  by  bidders  on  army  clothing,  and  to  act  so  that 
just  conditions  prevail."  The  report  of  this  committee  which 
was  submitted  to  the  Secretary  of  War,  August  18,  1917,  recom- 
mended among  other  things  that  contracts  should  contain  pro- 
vision for  the  eight-hour  law  of  June  19,  1912 ;  equal  pay  for 
equal  work  without  distinction  as  to  sex  or  race;  the  right  of 
collective  bargaining;  employment  of  no  persons  under  sixteen 
years  of  age ;  strict  compliance  with  local  labor  laws ;  completion 
of  garments  in  the  factory  under  control  of  employers  making 
the  contracts,  whose  establishments  have  passed  inspection  of  a 
government  agent.  In  addition  the  committee  recommended  that 
deference  should  be  given  to  normal  location  of  trade,  and  capac- 
ity and  equipment  of  manufactories.  In  all  cases  contracts  should 
be  granted  to  centers  of  industry  with  avowed  preference  for 
manufacturers  who  operate  under  collective  agreements,  which 
also  include  machinery  for  adjustment  of  industrial  disputes, 
and  who  have  a  good  record  for  compliance  with  local  labor 
laws.26  The  provisions  outlined  in  the  recommendations  of  the 
committee  were  incorporated  in  the  government  contracts  for 
the  manufacture  of  Army  clothing ;  they  included  an  eight-hour 
work-day,  compliance  with  state  labor  laws  and  regulations,  right 
of  collective  bargaining,  amicable  adjustment  of  industrial  griev- 
ances, a  minimum  wage  scale,  licensing  of  premises  and  sanita- 
tion inspection,  compliance  with  the  provisions  of  the  Federal 
Child  Labor  Law  of  September  1,  1916,  and  non-transfer  of  con- 
tracts. 

25  Monthly  Review,  U.  S.  Bureau  of  Labor  Statistics,  December,  1917, 
p.  51. 

d.,  October,  1917,  pp.  30-33. 


138  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [352 

The  above  form  of  contract  was  approved  by  the  Secretary  of 
War  and  the  Quartermaster  General.  The  War  Department  in 
announcing  the  new  form  of  agreement  was  confident  that :  ' '  The 
grievances  which  have  arisen  in  the  past  in  connection  with  the 
performance  of  clothing  contracts  will  be  entirely  removed  by 
the  enforcement  of  this  contract,  and  decent  industrial  standards 
not  only  established  but  also  enforced  by  the  Government.  The 
Department  feels  that  there  will  be  no  justification  for  any  delay 
hereafter  in  the  delivery  of  clothing  for  our  soldiers. ' ' 27 

Harness  and  Saddlery  Adjustment  Commission.  Other  en- 
deavors of  the  War  Department  to  solve  the  problems  of  labor, 
especially  the  element  of  industrial  unrest,  included  the  creation 
of  the  Harness  and  Saddlery  Adjustment  Commission  whose 
duty  it  was  to  fix  wage  rates  for  employees  in  all  those 
factories  supplying  leather  goods  and  harness  and  accessories, 
but  not  to  include  shoes.28  On  September  26,  1917,  an  agree- 
ment was  entered  into  between  the  government  and  the  repre- 
sentatives of  the  leather  manufacturers  and  leather  workers 
whereby  there  was  created  a  National  Harness  and  Saddlery 
Adjustment  Commission  composed  of  four  members,  of  whom 
two  were  appointed  by  the  Secretary  of  War  to  represent  the 
public,  one  by  the  manufacturers,  and  one  by  the  United  Leather 
Workers  International  Union.29  One  of  the  members  of  the  com- 
mission was  designated  by  the  Secretary  of  War  as  chairman. 
Each  member,  including  the  chairman,  was  entitled  to  one  vote, 
and  a  majority  of  votes  governed  in  all  cases.  The  duties  of  the 
commission  were  to  adjust  all  existing  and  future  disputes  as  to 
wages,  hours,  and  conditions  of  labor  under  government  con- 
tracts, and  to  prescribe  regulations  for  enforcement  of  decisions. 
Awards  were  binding  on  all  parties  concerned.  The  agreement 
was  to  remain  in  force  during  the  war  period,  no  interruption  of 
work  on  government  contracts  was  to  be  allowed,  manufacturers 
were  to  be  compensated  when  wage  scales  increased  under  the 
agreement,  wage  standards  were  not  to  be  less  than  those  in  effect 

27  Ibid.,  p.    31. 

28  Handbook  of  Information,  Army  Ordnance  Industrial  Service  Section, 
November,  1918,  p.  8. 

29  Report  of  the  Proceedings  of  the  Thirty-seventh  Annual  Convention  of 
the  American  Federation  of  Labor,  1917,  pp.  86,  87. 


353]          DECENTRALIZED  LABOR  ADMINISTRATION          139 

in  the  community,  and  the  same  rates  of  wages  were  to  be  paid 
for  union  and  non-union  labor. 

Arsenals  and  Navy  Yards  Commission.  In  addition  to  the  above 
there  was  established,  under  the  authority  of  the  Secretary  of 
War  and  the  Secretary  of  the  Navy,  the  Arsenals  and  Navy 
Yards  Commission,  with  Assistant  Secretary  of  the  Navy  Roose- 
velt as  chairman.  This  commission  had  jurisdiction  in  all  cases 
that  could  not  be  settled  by  representatives  of  the  Army  and 
Navy.  Major  B.  H.  Gitchell,  of  the  office  of  the  Secretary  of 
War,  had  charge  of  wage  adjustments  in  the  arsenals,  while 
adjustment  in  the  Navy  Yards  were  handled  by  Louis  McHowe, 
confidential  assistant  to  the  Assistant  Secretary  of  the  Navy. 
The  work  of  these  commissioners  was  so  successfully  accom- 
plished that  there  was  never  any  need  for  reference  to  the  Com- 
mission.30 

4.  SHIPBUILDING  LABOR  ADJUSTMENT  BOARD 
Maximum  production  in  the  shipbuilding  industry  during  the 
war  was  of  the  utmost  importance,  on  account  of  the  increasing 
menace  of  enemy  submarines.  The  necessity  for  increased  pro- 
duction, however,  did  not  prevent  the  spread  of  industrial  unrest 
and  disputes,  the  increase  of  labor  turnover,  and  the  conscious 
withdrawal  of  efforts  in  the  shipyards  on  the  Atlantic,  Pacific, 
and  Gulf  coasts,  and  on  the  Great  Lakes.  To  solve  these  and 
other  serious  problems  of  labor  the  Emergency  Fleet  Corpora- 
tion of  the  United  States  Shipping  Board  established  the  Ship- 
building Labor  Adjustment  Board  and  other  conciliatory 
agencies. 

The  Shipbuilding  Labor  Adjustment  Board  was  instituted  by 
agreements  entered  into  on  August  29,  1917,  and  December  8, 
1917,  by  the  Navy  Department,  the  Emergency  Fleet  Corpora- 
tion, and  certain  labor  leaders.  This  board  dealt  exclusively 
with  adjustments  of  wages,  hours,  and  conditions  of  labor  in  the 
construction  or  repair  of  those  shipbuilding  plants  for  which 
funds  were  provided  by  the  United  States  Shipping  Board  Emer- 
gency Fleet  Corporation  or  the  Navy,  and  in  the  construction 
or  repair  of  ships  carried  on  under  contract  with  the  Emergency 
Fleet  Corporation,  exclusive  of  work  done  in  the  Navy  Yards. 

so  Handbook  of  Information,  Army  Ordnance  Industrial  Service  Section, 
November,  1918,  p.  12. 


140  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [354 

The  board  consisted  of  three  persons,  one  appointed  jointly  by 
the  Emergency  Fleet  Corporation  and  the  Navy  Department; 
one  representing  the  public,  appointed  by  the  President  of  the 
United  States ;  and  one  representing  labor,  appointed  by  Samuel 
Gompers.31  In  fact,  Mr.  Gompers  nominated  two  members,  one 
to  represent  the  metal  trades  in  all  disputes  concerning  the  con- 
struction of  shipyards  and  steel  ships,  and  one  to  represent  the 
trades  primarily  concerned  in  the  construction  of  wooden  hulls. 
In  the  event  that  both  of  these  trades  were  involved  in  a  dispute 
the  two  members  would  determine  which  one  should  sit  in  the 
conference,  or  if  they  failed  to  agree  in  this  matter  Mr.  Gompers 
made  the  selection.  Representatives  of  employers  and  employees 
of  the  production  plants  in  which  grievances  arose  were  given 
the  right  to  sit  with  voting  power  as  associate  members  of  the 
board.  In  all  controversies  in  private  plants  in  which  there  was 
also  construction  for  the  Navy  Department,  the  Navy  Depart- 
ment was  represented  by  the  Secretary  of  the  Navy  or  a  person 
designated  by  him  to  sit  with  voting  power  as  a  member  of  the 
board.  In  case  of  a  tie  when  the  board  was  so  constituted,  the 
decision  was  left  to  the  Secretary  of  War  as  chairman  of  the 
Council  of  National  Defense  or  to  some  person  appointed  by  him. 

The  construction  plants  coming  under  the  jurisdiction  of  the 
board  were  geographically  districted.  In  each  district  the  con- 
tractors and  the  representatives  of  international  labor  organiza- 
tions concerned  in  the  construction  work  selected  a  person  or  per- 
sons to  act  as  examiner  or  examiners  in  the  said  district,  or  the 
board  itself  selected  these  officials  in  case  it  seemed  advisable,  or 
if  the  above  parties  could  not  agree.  All  disputes  with  reference 
to  wages,  hours,  or  conditions  of  labor  were  reported  by  the  dis- 
trict officer  of  the  Emergency  Fleet  Corporation  to  the  board 
and  to  the  district  examiner. 

The  Adjustment  Board  was  instructed  to  use  as  basic  stand- 
ards the  wage  rates  prevailing  in  the  district  in  which  the  dispute 
arose,  provided  such  wage  rates  had  been  established  through 
agreements  between  employer  and  employees  and  were  accepted 
as  equitable.  Consideration  was  given,  however,  to  any  circum- 
stances arising  after  such  wages,  hours,  or  conditions  were  estab- 

3i  Memorandum  for  the  Adjustment  of  Wages,  Hours,  and  Conditions  of 
Labor  in  Shipbuilding  Plants,  United  States  Shipping  Board,  p.  1. 


355]          DECENTRALIZED  LABOR  ADMINISTRATION  141 

lished,  and  which  seemed  to  call  for  changes.32  In  the  absence 
of  such  an  agreement  between  employers  and  workmen,  as  in  a 
new  industrial  district,  the  standards  introduced  in  districts  hav- 
ing similar  living  conditions  and  cost  of  living  were  established. 
It  was  wisely  provided  that  the  board  should  keep  itself  fully 
informed  as  to  the  relation  between  living  costs  in  the  several 
districts  and  their  comparison  at  specific  interevals.  This  latter 
provision  was  generally  adopted  by  the  numerous  boards  and 
commissions  in  dealing  with  the  labor  situation. 

The  decisions  of  the  Shipbuilding  Labor  Adjustment  Board 
were  made  retroactive,  and  at  any  time  after  six  months  had 
elapsed  following  ratification  of  the  agreement  or  final  decision 
by  the  board  the  questions  could  be  reopened  by  it  for  readjust- 
ment, upon  request  of  the  majority  of  the  craft  or  crafts  con- 
cerned, provided  it  could  be  demonstrated  that  there  had  been  a 
general  and  material  increase  in  the  cost  of  living.  The  board's 
decisions  were  final  and  binding  on  all  parties  within  these  pre- 
scribed limits,  altho  either  party  possessed  the  right  of  appeal 
to  a  Board  of  Review  and  Appeal  consisting  of  three  members 
named  jointly  by  the  United  States  Shipping  Board  Emergency 
Fleet  Corporation  and  the  United  States  Navy  Department,  and 
three  named  by  the  President  of  the  American  Federation  of 
Labor.33 

The  accomplishments  of  the  Shipbuilding  Adjustment  Board 
should  be  noted.34  The  principal  characteristics  of  the  decisions 
of  the  board  in  cases  that  arose  in  shipyards  on  the  Atlantic, 
Pacific,  and  Gulf  coasts  and  on  the  Great  Lakes  were:  (1)  the 
establishment  of  a  uniform  national  scale  of  wages  for  all  skilled 
trades  and  the  adjustment  of  wage  standards  to  meet  the  increase 
in  the  cost  of  living.  For  example,  the  average  increase  in  the 
cost  of  living  on  the  Pacific  Coast  from  October,  1917,  to  October, 
1918,  was  20  per  cent,  and  the  board  in  applying  this  average 

32  ibid.,  p.  2. 

ss  Ibid.,  p.  3. 

si  For  the  greater  details  of  the  operation  of  the  Board  the  reader  is  re- 
ferred to  the  following:  Decision  as  to  Wages,  Hours,  and  other  Condi- 
tions in  Pacific  Coast  Shipyards  by  the  Shipbuilding  Labor  Adjustment 
Board,  October  1,  1918,  and  the  Decision  as  to  Wages,  Hours,  and  other 
Conditions  in  Atlantic  Coast,  Gulf  and  Great  Lakes  Shipyards  by  the  Ship- 
building Labor  Adjustment  Board,  October  1,  1918. 


142  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [356 

increase  to  the  basic  daily  wage  of  $5.25  established  by  an  earlier 
decision,  made  the  new  basic  wage  $6.30  or  78%  cents  an  hour, 
while  for  the  Atlantic  Coast,  Gulf,  and  Great  Lakes  for  the  eight 
months  from  December,  1917,  to  August,  1918,  the  cost  of  living 
advanced  15  per  cent  and  the  basic  hourly  rate  of  70  cents  was 
replaced  by  a  new  rate  of  8Q!/2  cents.  In  the  interests  of  uni- 
formity and  the  prevention  of  labor  unrest  and  turnover  the 
basic  hourly  wage  rate  for  the  principal  skilled  crafts  was  made 
80  cents.  No  such  uniform  scale  was  made  for  common  laborers, 
but  the  wages  were  advanced  as  much  or  more  than  increases  in 
the  cost  of  living.  (2)  Payment  of  transportation  expenses  of 
employees  incurred  in  going  to  and  from  their  work  in  the  ship- 
yards.35 (3)  Organization  of  shop  committees  for  the  adjust- 
ment of  grievances  between  management  and  labor,  especially 
where  no  joint  agreement  between  shipyard  owners  and  labor 
organizations  had  been  effected.  The  organization  and  work  of 
these  committees  is  worthy  of  note.  The  employees  of  each  craft 
or  calling  in  a  shop  or  yard  selected  three  of  their  number  to 
represent  them  as  members  of  a  shop  committee.  Each  member 
served  for  a  term  of  six  months  and  was  selected  by  majority 
vote  through  secret  ballot,  in  such  manner  as  the  workers 
directed.  Vacancies  for  an  unexpired  term  were  filled  by  ballot, 
and  out-going  committee  members  were  eligible  for  reelection. 
The  chairman  of  each  shop  committee  was  a  member  of  a  joint 
shop  committee,  which  by  ballot  selected  five  of  its  members  to 
act  as  an  executive  committee  to  represent  it  in  conferences  with 
the  superintendent  or  higher  officials  of  the  company.  The  dis- 
trict examiner  was  authorized  to  pass  upon  the  validity  of  the 
election  of  a  shop  committee  in  case  a  protest  was  filed,  and  to 
supervise  a  new  election  when  such  an  election  seemed  to  him 
necessary.  When  a  grievance  arose  it  was  taken  up  by  the  craft 
or  laborers'  committee  with  the  foreman  or  general  foreman. 
Failing  an  adjustment,  the  craft  or  laborers'  committee  took  the 
matter  up  with  the  superintendent,  and  if  deemed  necessary  by 
the  committee  it  selected  a  special  representative  to  assist  it  in 
the  conference  with  the  superintendent  or  higher  officials.  In 

35  Decision  as  to  Wages,  Hours,  and  Other  Conditions  in  Atlantic  Coast, 
Gulf  and  Great  Lakes  Shipyards,  by  Shipbuilding  Adjustment  Board,  Octo- 
ber 1,  1918,  p.  1-3. 


357]  DECENTRALIZED  LABOR  ADMINISTRATION  143 

case  the  dispute  concerned  more  than  one  craft,  the  matter  was 
negotiated  through  the  joint  shop  committee,  first  with  the  super- 
intendent and  then,  failing  a  settlement,  with  the  higher  offi- 
cials of  the  company.  In  these  conferences  the  joint  committee 
of  the  crafts  had  the  right  to  call  in  a  special  representative  to 
assist  it.  Whenever  this  conference  failed  to  effect  a  settlement 
of  the  grievance,  the  matter  was  submitted  to  the  district  exam- 
iner. To  prevent  discrimination  against  duly  elected  committee- 
men,  it  was  provided  that  in  case  such  a  committeeman  was 
found  to  have  been  discharged  without  just  and  sufficient  cause, 
after  due  investigation  by  the  committee,  he  was  reinstated  with 
full  pay  for  all  time  lost.  Other  phases  of  the  board's 
awards  included  the  prohibition  of  discrimination  against  union 
or  non-union  men,  weekly  payment  of  wages,  prompt  payment  on 
withdrawal  from  employment,  provision  of  medical  aid,  provi- 
sion of  adequate  toilets,  washing  facilities  and  drinking  water, 
and  prevention  of  reduction  in  wages  of  individual  employees.36 

5.    ADJUSTMENT  OF  LABOR  DISPUTES  IN  LOADING  AND  UNLOAD- 
ING SHIPS 

The  importance  of  prompt  and  uninterrupted  action  in  the 
loading  and  unloading  of  vessels  is  too  obvious  to  need  emphasis 
here.  All  our  efforts  in  prosecuting  the  war  would  have  been 
futile  had  our  machinery  broken  down  at  this  point.  To  assure 
the  dispatch  of  vessels  from  our  Atlantic,  Gulf,  and  Pacific  ports, 
therefore,  it  was  necessary  to  find  adequate  means  for  the  ad- 
justment of  grievances  over  wages,  hours,  and  other  conditions 
of  labor  in  this  field.  During  the  latter  part  of  August,  1917,  an 
agreement  was  reached  and  announced  by  the  United  States 
Shipping  Board,  the  Secretary  of  "War,  the  International  Long- 
shoremen's Association  (numbering  about  150,000  members  on 
all  coasts),  the  Secretary  of  Labor,  the  President  of  the  Amer- 
ican Federation  of  Labor,  and  the  Chief  of  Shipping  Operations. 
This  agreement  provided  for  a  national  commission  to  consider 
and  adjust  all  disputes  arising  in  connection  with  loading  and 
unloading  of  vessels  in  Atlantic,  Gulf,  and  Pacific  ports.  The 
terms  of  the  agreement  which  was  formally  assented  to  by  the 
United  States  Shipping  Board  and  the  International  Longshore- 

se  ibid,.,  pp.  7-10. 


144  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [358 

men's  Association  included  the  following  provisions:  (1)  The 
union  scale  of  wages,  hours,  and  conditions  in  force  August  1, 
1917,  in  a  given  port  was  to  constitute  the  basic  standard.  (2) 
All  differences  in  a  particular  port  were  to  be  adjusted  by  a 
local  commission  when  possible.  This  commission  was  appointed 
in  each  case  by  the  national  commission  mentioned  above,  and 
consisted  of  one  member  representing  the  Shipping  Board  and 
the  War  Department,  one  nominated  by  the  Longshoremen's 
Association  to  represent  labor,  and  one  nominated  by  the  carriers 
to  represent  the  shipping  interests.  In  each  case  an  appeal  could 
be  made  from  the  decision  of  the  local  commission  to  the  national 
commission.  (3)  Consideration  was  to  be  given  to  the  necessity 
of  changing  standards  to  meet  the  changes  in  the  cost  of  living. 
(4)  There  was  to  be  no  interruption  of  work  pending  the  action 
of  the  local  commission  or  the  decision  of  the  national  commis- 
sion. (5)  The  decision  of  the  national  commission  was  to  be 
binding  on  all  parties  concerned.37 

6.    RAILWAY  BOARDS  OF  ADJUSTMENT 

Eailroads  have  been  aptly  described  as  the  arteries  of  national 
life.  Should  these  arteries  cease  to  function  even  for  a  brief 
time  national  existence  is  threatened  and  individual  activity  par- 
alyzed. The  labor  situation  on  American  railroads  has  been  ex- 
tremely acute  at  no  infrequent  intervals,  and  one  of  these  crit- 
ical periods  was  during  the  great  war,  especially  before  the  gov- 
ernment assumed  control  of  the  roads.  Labor  unrest  did  not  sub- 
side with  the  enactment  of  the  Adamson  eight-hour  law,  but 
gathered  momentum  with  the  demands  for  higher  rates  of  wages 
to  cover  the  increasing  cost  of  living. 

To  settle  all  controversies  arising  over  wages,  hours,  and  other 
conditions  of  labor  on  the  railroads,  the  United  States  Railroad 
Administration  formulated  a  definite  policy  and  provided  ma- 
chinery of  adjustment.  Boards  of  adjustment  were  organized 
by  agreement  between  representatives  of  the  Railroad  Adminis- 
tration and  the  "big  four"  brotherhoods  —  engineers,  conduc- 
tors, trainmen  and  firemen,  and  enginemen.  Railway  Board  of 
Adjustment  No.  1  consisted  of  eight  members  —  four  selected 
by  the  regional  directors  of  the  lines  and  compensated  by  the 

37  Report  of  the  Proceedings  of  the  Thirty -seventh  Annual  Convention  of 
the  American  Federation  of  Labor,  1917,  pp.  85,  86. 


359]         DECENTRALIZED  LABOR  ADMINISTRATION          145 

railroads,  and  one  each  by  the  chief  executive  officer  of  each  of 
the  railroad  brotherhoods  and  compensated  by  them.  Railway 
Board  of  Adjustment  No.  2  consisted  of  twelve  members  —  six 
selected  by  the  regional  directors  and  paid  by  the  roads,  and  one 
each  by  the  chief  executive  of  the  International  Brotherhood  of 
Electrical  Workers,  Amalgamated  Sheet  Metal  "Workers'  Inter- 
national Alliance,  Brotherhood  of  Railway  Car-men  of  America, 
International  Brotherhood  of  Blacksmiths  and  Helpers,  Inter- 
national Brotherhood  of  Boilermakers,  Iron  Shipbuilders  and 
Helpers  of  America,  and  International  Association  of  Ma- 
chinists.38 

The  boards  of  adjustment  just  described  met  in  "Washington 
at  stated  times  each  month  and  continued  in  session  until  all 
matters  before  them  were  considered.  Subdivisions  of  the  boards 
were  provided  for  to  conduct  hearings  and  pass  on  controversies 
when  properly  submitted  at  any  place  designated  by  the  boards, 
but  such  subdivisions  were  not  authorized  to  make  final  decision, 
these  decisions  being  reserved  for  the  consideration  of  each  of 
the  boards  as  a  whole.  The  boards  were  authorized  to  adjust 
disputes  over  the  application  of  the  eight-hour  law,  formerly 
cared  for  by  the  Commission  of  Eight.  The  question  of  wages 
and  hours  was  generally  left  to  the  Railroad  Wage  Commission, 
but  matters  of  dispute  arising  from  interpretations  of  wage 
agreements,  not  including  matters  passed  upon  by  the  Railroad 
Wage  Commission,  were  decided  by  the  adjustment  boards.  Dif- 
ferences arising  between  management  and  employees  on  the  re- 
spective roads,  regarding  the  incorporation  in  existing  agree- 
ments of  wages  and  hours  fixed  by  the  Director  General  of  the 
Railroads,  were  decided  by  the  boards,  subject  to  review  by  the 
Director  General.  Personal  grievances  or  controversies  arising 
under  interpretation  of  wage  agreements,  and  all  other  disputes 
between  officials  of  the  railroads  and  their  employees,  when  fail- 
ing of  adjustment  by  the  local  authorities,  were  submitted  to  the 
Director  of  the  Division  of  Labor  of  the  United  States  Railroad 
Administration  who  in  turn  presented  the  case  to  the  appro- 
priate Railway  Adjustment  Board  for  consideration  and  deci- 
sion. In  all  cases  coining  before  these  boards  both  parties  were 

38  For  detailed  account  of  these  boards  and  their  functions  see  United 
States  Eailroad  Administration  Bulletin,  No.  4,  1918,  pp.  46-49,  100-103. 


146  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [360 

accorded  representation.  A  majority  vote  of  the  board  in  each 
case  was  necessary  for  final  decision,  and,  if  impossible  to  secure 
a  majority  vote,  the  final  determination  rested  with  the  Director 
General.  All  agreements  became  effective  upon  their  approval 
by  the  Director  General,  and  continued  in  force  for  the  duration 
of  the  war,  and  thereafter,  unless  a  majority  of  representatives 
of  the  railroads  or  of  the  employees  desired  to  terminate  the 
agreement,  in  which  case  thirty  days  formal  notice  was  neces- 
sary. The  Director  General,  however,  possessed  the  power  to 
terminate  all  agreements  at  his  own  discretion,  upon  serving 
similar  notice.39 

7.     THE  RAILROAD  WAGE  COMMISSION 

Previous  to  the  establishment  of  the  above  boards  of  adjust- 
ment the  Director  General  had,  on  January  18,  1918,  in  his  Gen- 
eral Order  No.  5,  provided  for  the  organization  of  a  Railroad 
Wage  Commission.40  When  Director  General  William  G.  Mc- 
Adoo  assumed  control  of  railway  operation  in  the  United  States 
on  December  28,  1917,  he  was  confronted  with  serious  labor 
troubles  expressed  in  terms  of  demands  for  higher  wages  and 
general  improvement  of  working  conditions.  The  commission 
which  he  appointed  to  handle  the  situation  consisted  of  Franklin 
K.  Lane,  Secretary  of  the  Interior;  Charles  C.  McChord,  mem- 
ber of  the  Interstate  Commerce  Commission ;  J.  Harvey  Coving- 
ton,  Chief  Justice  of  the  Supreme  Court  of  the  District  of  Col- 
umbia ;  and  William  R.  Willcox,  of  New  York.  The  function  of 
this  Commission  was  to  "make  a  general  investigation  of  the 
compensation  of  persons  in  the  railroad  service,  the  relation  of 
railroad  wages  to  wages  in  other  industries,  the  conditions  re- 
specting wages  in  different  parts  of  the  country,  the  special 
emergency  respecting  wages  which  exists  at  this  time  owing  to 
war  relation  between  different  classes  of  railroad  labor."  The 
commission  was  instructed  to  begin  its  work  immediately  and  to 
recommend  in  general  terms  changes  in  compensation  of  railroad 
employees  which  seemed  to  it  necessary.  This  investigation  was 
facilitated  by  the  order  of  the  Director  General  instructing  offi- 

39  Bulletin  No.  4,  United  States  Railroad  Administration,  1918,  pp.  46-49, 
101-103. 

40  Railway  Adjustment  Boards  No.   1   and  No.   2  were  established  on 
March  22,  1918,  and  May  31,  1918,  respectively.     Ibid.,  pp.  46  and  100. 


361]  DECENTRALIZED  LABOR  ADMINISTRATION  147 

cers,  agents,  and  employees  of  the  roads  to  furnish  upon  request 
all  information  required.41 

The  report  of  the  above  commission  is  a  noteworthy  document, 
the  result  of  comprehensive  and  intensive  study  of  the  general 
labor  situation  on  the  railroads  of  the  United  States,  together 
with  a  general  study  of  the  experience  of  Great  Britain  and 
France.42  Many  of  the  major  suggestions  made  by  the  commis- 
sion were  embodied  in  and  made  effective  by  General  Order  No. 
27  of  the  Director  General,  issued  March  25,  1918.  This  order 
provided  for  an  annual  increase  in  wages  aggregating  about 
$300,000,000,  the  adoption  of  the  basic  eight-hour  day,  special 
rates  of  pay  for  overtime,  equal  pay  for  equal  work  when  women 
perform  tasks  similar  to  the  ones  performed  by  men,  protection 
of  the  health  and  lives  of  employees,  equal  pay  for  colored  em- 
ployees doing  the  same  service  as  white  workers,  and  the  estab- 
lishment of  a  board  of  railroad  wages  and  working  conditions. 
The  Director  General  in  creating  the  Board  of  Railroad  Wages 
and  Working  Conditions  stated  that  the  problem  of  doing  justice 
to  the  2,000,000  railroad  employees  of  the  country  could  not  be 
settled  and  disposed  of  by  one  decision  or  order  and  for  this  rea- 
son a  permanent  board  of  investigation  and  administration  was 
necessary.43  This  statement  takes  cognizance  of  a  principle  long 
desired  but  not  until  recently  instituted  in  programs  and  policies 
of  labor  administration  in  the  United  States,  namely,  the  inade- 
quacy of  temporary  commissions  and  boards,  and  the  necessity 
of  providing  permanent  commissions.  Permanently  organized 
and  continuously  operating  labor  boards  are  one  of  the  most 
necessary  prerequisites  to  a  successful  solution  of  industrial  un- 
rest and  other  serious  labor  problems  in  the  United  States. 

The  functions  of  the  Board  of  Railroad  Wages  and  Conditions 
were  outlined  by  the  Director  General  as  follows:  To  investi- 
gate all  matters  presented  by  railroad  employees  or  their  repre- 
sentatives affecting  (1)  inequalities  as  to  wages  and  working 
hours,  whether  of  individuals  or  classes  of  workers;  (2)  condi- 
tions arising  from  competition  with  employees  in  other  indus- 

41  Bulletin  No.  4,  U.  S.  Railroad  Administration,  1918,  p.  25. 

42  See  Report  of  the  'Railroad,  Wage  Commission  to  the  Director  General 
of  Railroads,  April  30,  1918. 

43  See  General  Order  No.  27,  U.  S.  Eailroad  Administration,  May  25, 
1918. 


148  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [362 

tries;  (3)  rules  and  working  conditions  for  the  several  classes  of 
employees,  either  for  the  country  as  a  whole  or  for  different 
parts  of  the  country.  In  addition,  the  board  was  empowered  to 
hear  and  investigate  other  matters  affecting  wages  and  conditions 
of  employment  referred  to  it  by  the  Director  General.  It  should 
be  noted,  however,  that  the  board  was  solely  an  advisory  body 
and  all  its  recommendations  were  submitted  to  the  Director  Gen- 
eral for  his  determination.44  This  was  the  essential  weakness  of 
the  board.  Had  it  .been  clothed  with  final  disposition  of  cases 
and  authority  to  enforce  awards  and  findings,  its  success  could 
have  been  greater. 

8.  LABOR  POLICY  OF  THE  FUEL  ADMINISTRATION 
The  development  of  a  comprehensive  plan  of  labor  administra- 
tion in  the  United  States  was  bound  to  include  the  Fuel  Admin- 
istration, whose  work  was  so  intimately  related  to  the  production 
and  distribution  of  one  of  the  most  essential  commodities.  In 
July,.  1918,  a  conference  was  held  at  Washington  between  Mr. 
Garfield,  fuel  administrator,  and  the  officers  of  the  United  Mine 
Workers  of  America,  at  which  an  agreement  was  made  whereby 
all  questions  relating  to  mine  labor  were  to  remain  under  the 
jurisdiction  of  the  Fuel  Administration.45  A  bureau  of  labor 
was  established,  to  which  all  problems  pertaining  to  mine  labor 
were  to  be  referred.  Certain  fundamental  principles  were  ac- 
cepted to  govern  the  settlement  of  all  controversies  that  might 
arise.  In  the  main,  these  principles  were  the  same  as  those  out- 
lined by  the  War  Labor  Board,  which  are  summarized  elsewhere 
in  this  study.46  A  rule,  peculiar  to  the  mining  labor  situation, 
provided  that  the  so  called  automatic  penalty  clause  then  in 
force  was  to  be  accepted  as  a  primary  principle  by  the  mine 
workers  in  collective  bargaining  during  the  war,  and  was  to  be 
included  in  all  agreements  as  a  prerequisite  to  any  advances  in 
the  fixed  prices  granted  by  the  Fuel  Administration  to  the  mine 
operators.  The  penalty  clause  here  referred  to  developed  out  of 
the  President's  Orders  of  October  27,  1917,  which  provided  that 
miners  who  struck  without  cause  would  be  fined  $1.00  a  day 

**  Ibid.,  p.  24. 

«  Official  Bulletin,  July  25,  1918,  p.  13. 

46  See  pp.  165,  166. 


363]  DECENTRALIZED  LABOR  ADMINISTRATION  149 

each,  and  mine  operators  locking  out  their  employees  would  be 
fined  $2.00  a  day  for  each  man  not  working.47 

The  labor  policy  of  the  Fuel  Administration  was  created  only 
after  most  serious  difficulties  had  arisen  at  frequent  intervals. 
Mine  workers  everywhere  were  restive.  For  this  situation  the 
mine  operators  themselves  were  partly  responsible,  because  they 
did  not  hesitate  to  bid  against  each  other  in  their  eagerness  to 
obtain  workers.  This  competition  encouraged  labor  turnover 
and  greatly  decreased  the  productivity  of  the  mines.  In  an  at- 
tempt to  remedy  this  situation  Mr.  Garfield  issued  a  warning 
against  the  payment  of  bonuses  in  any  form  as  being  a  violation 
of  the  spirit  of  the  agreement  made  by  the  operators  and  the 
miners  with  the  President.  He  urged  that  such  practices  cease, 
and  threatened  that  if  the  payment  of  bonuses  continued  he 
would  assume  that  the  prices  of  coal  were  too  high  and  would 
order  a  reduction.48  Moveover,  it  had  been  necessary  frequently 
for  the  administrator  to  exert  pressure  on  both  miners  and  oper- 
ators to  prevent  a  shutdown  of  the  mines.  For  instance,  in 
October,  1917,  when  the  question  of  coal  prices  was  being  con- 
sidered, Mr.  Garfield  warned  the  miners  of  the  southwestern 
district  in  the  following  words :  ' '  There  are  evidently  some  who 
fail  to  understand  the  gravity  of  the  situation  and  who  do  not 
hesitate  to  advocate  strikes  at  the  present  time  as  a  means  of 
forcing  the  government  to  at  once  decide  whether  the  wage  in- 
crease agreed  to  at  meetings  recently  held  at  Washington  by  the 
operators  and  miners  of  the  Central  District  should  justly  be 
covered  by  an  advance  in  the  prices  fixed  by  the  President.  .  . 
If  either  the  operators  or  the  miners  attempt  to  bring  pressure 
upon  me  to  reach  a  decision,  I  shall  postpone  it  and  use  what- 
ever powers  are  necessary  to  compel  the  production  of  coal  to 
meet  the  country 's  needs. ' ' 49  Similar  warnings  were  given  the 
mine  operators  in  Oklahoma.50 

9.     UNITED  STATES  BOARD  OF  MEDIATION  AND  CONCILIATION 
When  the  government  assumed  control  of  the  railroads  on  De- 
cember 28,  1917,  it  took  over  less  than  200  of  the  2700  railroads 

47  Commercial  and  Financial  Chronicle,  December  1,  1917,  p.  240. 

48  Official  Bulletin,  August  6,  1918,  p.  1, 

*9  Commercial  and  Financiaal  Chronicle,  October  20,  1918,  p.  1586. 
.,  December  1,  1917,  p.  2139. 


150  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [364 

in  the  United  States.51  Obviously  the  agencies  described  above 
were  not  sufficient  to  deal  with  the  multiplicity  of  labor  troubles 
that  were  evidencing  themselves  on  the  various  transportation 
systems  throughout  the  country  during  the  war.  The  contro- 
versies that  arose  on  the  railroads  not  under  government  con- 
trol were,  therefore,  taken  care  of  by  the  United  States  Board  of 
Mediation  and  Conciliation,  created  under  the  authority  of  the 
Newlands  Act  of  1913,  to  have  jurisdiction  over  labor  disputes 
in  connection  with  common  carriers  in  interstate  commerce.52 
During  the  period  of  the  war  this  board  was  more  active  than  it 
had  been  since  its  inception,  and  it  accomplished  greater  results. 

10.  THE  PRESIDENT'S  MEDIATION  COMMISSION 
The  problem  of  industrial  unrest  became  so  acute  in  the  west- 
ern states  during  the  summer  of  1917  that  Samuel  Gompers  in  a 
conference  with  President  Wilson  urged  government  interfer- 
ence and  action  —  a  somewhat  unusual  suggestion  for  a  leader 
of  American  organized  labor  who  generally  frowns  upon  govern- 
ment interference.  The  President  soon  appreciated  the  gravity 
of  the  situation,  and  requested  the  Council  of  National  Defense 
to  give  the  matter  its  earnest  and  immediate  consideration  with 
a  view  to  devising  some  means  of  dealing  with  the  problem.  This 
has  been  characterized  as  the  first  concrete  evidence  during  the 
war  of  an  attitude  toward  the  labor  problem  on  the  part  of  the 
President  himself.53  In  response  to  the  President's  request  the 
Council  made  a  counter  proposal  that  the  President  appoint  a 
commission  to  investigate  the  conditions  in  the  western  and  Paci- 
fic coast  regions,  and  to  adjust,  if  possible,  the  many  grievances 
that  had  arisen  there.  The  necessity  of  government  interference 
was  obvious  to  organized  labor  which  feared  possible  develop- 
ments of  a  radical  nature.  Labor's  conception  of  the  situation 
was  plainly  expressed  in  the  following  words  at  the  annual  con- 
vention of  the  American  Federation  of  labor : 

The  extent  and  nature  of  industrial  unrest  that  has  been  manifested  in 
the  western  part  of  this  country  has  been  the  cause  of  deep  concern  to  those 
responsible  for  the  conduct  of  the  nation's  affairs.     This  unrest  has  a  back- 
si  Handbook  of  Information,  Army  Ordnance  Industrial  Service  Section, 
November,  1918,  p.  12. 

52  United  States  Laws,  1913,  C.  6. 

53Wehle,  Louis  B.,  Quarterly  Journal  of  Economics,  XXXII  (February, 
1918),  p.  335. 


365]         DECENTRALIZED  LABOR  ADMINISTRATION          151 

ground  of  discontent  growing  out  of  industrial  and  social  conditions.  .  . 
From  Washington,  Montana,  Idaho,  Michigan,  New  Mexico,  Arizona,  and 
other  places  come  reports  that  wage-earners  and  representatives  of  the 
organized  labor  movement  were  illegally  arrested,  denied  the  rights  of  free 
citizens,  and  in  some  cases  driven  out  of  the  state  or  locality.  The  most 
audacious  of  these  invasions  of  the  rights  of  free  citizens  were  the  deporta- 
tion of  wage-earners  and  others  from  New  Mexico  and  Arizona.  .  .  In 
Arizona  the  deportation  of  over  a  thousand  people  from  the  state  was  a 
part  of  the  tactics  to  defeat  a  strike  that  was  in  progress.  Over  10,000 
Mexican  copper  miners  were  on  strike  for  the  right  to  organize.54 

Appointment  of  a  Mediation  Commission.  Accepting  the 
above  statement  as  fairly  descriptive  of  Mr.  Gompers's  pre- 
sentation of  the  western  labor  situation,  President  Wilson  was 
bound  to  realize  the  necessity  of  a  speedy  solution,  especially  in 
view  of  the  important  relation  of  the  copper  mining  industry  to 
the  nation's  war  program.  Accordingly,  in  a  memorandum  for 
the  Secretary  of  Labor,  September  18,  1917,  the  President,  ex- 
pressing a  deep  interest  in  and  concern  over  the  labor  troubles 
in  the  West  and  stating  his  desire  to  have  formulated  some  kind 
of  working  agreement  for  the  future,  appointed  a  labor  commis- 
sion. This  commission,  known  as  the  President's  Mediation 
Commission,  consisted  of  William  B.  Wilson,  Secretary  of  Labor, 
Colonel  J.  L.  Spangler,  of  Pennsylvania,  Verner  Z.  Reed,  of 
Colorado,  John  H.  Walker,  of  Illinois,  and  E.  P.  Marsh,  of  Wash- 
ington. Felix  Frankfurter  of  New  York  acted  as  secretary  to 
the  commission.55  Thus  constituted  the  commission  left  Wash- 
ington, September  30,  1917,  to  carry  out  its  mission  of  personal 
mediation,  going  direct  to  the  field  of  grievances. 

Duties  of  the  Commission.  The  duties  of  the  Mediation 
Commission  were  defined  by  President  Wilson  as  follows:  (1) 
To  visit  in  each  instance  the  Governor  of  the  State,  advising  him 
of  their  position  as  personal  representatives  of  the  President  in 
an  endeavor  to  lend  sympathetic  counsel  and  aid  to  the  state 
government  in  the  development  of  a  better  understanding;  (2) 
to  deal  with  employers  and  employees  in  a  conciliatory  spirit 
with  a  view  to  the  settlement  of  disputes  and  the  formulation  of 
an  agreement  that  would  guarantee  a  maximum  of  output;  (3) 
to  learn  the  real  causes  of  discontent  on  the  part  of  either  labor 

54  Report  of  the  Proceedings  of  the   Thirty-seventh  Convention  of  the 
American  Federation  of  Labor,  1917,  p.  88. 

55  Official  Bulletin,  September  21,  1917,  p.  1. 


152  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [366 

or  capital,  or  both ;  (4)  to  improve  labor  conditions  in  the  Pacific 
Northwest;  (5)  to  report  to  the  President  from  time  to  time  such 
information  as  may  require  immediate  attention.56  The  method 
of  approaching  the  problem  was  to  consist  of  personal  confer- 
ences with  employers,  employees,  and  state  officials. 

The  Problem.  The  task  that  confronted  the  commission 
was  not  a  simple  one.  Disputes  were  prevalent  in  four  copper 
districts  of  Arizona  in  which  is  mined  twenty-eight  per  cent  of 
all  the  copper  produced  in  the  United  States.  During  the  sum- 
mer of  1917  there  were  widespread  strikes  and  shutdowns  for 
three  months,  entailing  a  loss  of  100,000,000  pounds  of  copper. 
The  oil  fields  of  California,  averaging  an  output  of  8,000,000  bar- 
rels a  month,  or  about  one-third  of  the  total  output  of  oil  for  the 
United  States,  were  the  scene  of  unprecedented  labor  unrest.  In 
the  states  of  California,  Oregon,  Washington,  Idaho,  and  Nevada 
the  telephone  industry  was  tied  up,  there  being  about  13,000 
employees  involved  in  the  disputes.  The  lumbering  industry, 
the  products  of  which  were  sorely  needed  for  the  nation's  aero- 
plane program,  suffered  a  breakdown  of  several  months  during 
1917,  and  afterwards  operated  below  normal  productivity.  Dis- 
putes in  this  industry  involved  70,000  men.57  Controversies  in 
the  packing  industry  centering  in  Chicago,  threatened  at  an 
early  date  to  paralyze  the  entire  meat  industry  of  the  United 
States  because  of  the  idleness  of  100,000  employees  that  would 
result  from  a  general  strike. 

Report  and  Recommendations.  In  its  investigations  the 
commission  discovered  that  the  causes  of  the  widespread  labor 
unrest  consisted  of:  (1)  The  absence  of  safeguards  against 
strikes,  such  as  boards  of  investigation,  conciliation,  and  arbitra- 
tion. "In  place  of  orderly  process  of  adjustment  workers  were 
given  the  alternative  of  submission  or  strike."  (2)  Distant  own- 
ership of  industries.  Western  industries  are  owned  and  con- 
trolled largely  by  eastern  capitalists  who  entrust  the  operation 
of  establishments  to  salaried  managers  who  fail  to  understand 
the  point  of  view  of  the  workmen.  (3)  The  desire  of  the  work- 
ers to  organize  and  bargain  collectively  instead  of  individually  as 
in  the  past,  and  the  relentless  opposition  of  employers  to  collec- 

5c  Official  Bulletin,  Sept,  21,  1917,  p.  I,  and  Feb.  11,  1918,  p.  9. 
57  Ibid.,  February  11,  1918,  pp.  9,  12. 


367]         DECENTRALIZED  LABOR  ADMINISTRATION          153 

tive  action.  (4)  The  demand  of  the  workers  for  the  basic  eight- 
hour  day,  which  was  also  opposed  by  the  employers.  Employers 
that  did  introduce  the  change  in  the  work-day  suffered  discrim- 
ination by  employers'  associations.  (5)  A  general  demand  for 
higher  wages  commensurate  with  the  rise  in  the  cost  of  living. 
(6)  Autocratic  control  of  industry  which  prevents  labor  from 
having  a  voice  in  the  determination  of  working  conditions. 
Other  causes  of  industrial  unrest  included  abnormal  labor  turn- 
over due  to  the  prevalence  throughout  the  West  of  a  migratory 
laboring  population,  the  polyglot  character  of  the  working  class 
which  made  unification  and  cooperation  among  them  very  diffi- 
cult, the  spread  of  the  philosophy  of  international  solidarity  and 
other  socialistic  doctrines,  and  unhealthful  social  conditions 
in  the  camps.58 

In  a  period  of  five  weeks  the  commission  disposed  of  two  hun- 
dred and  fifty  disturbances  in  industrial  establishments,  and  con- 
tinued its  work  for  several  subsequent  weeks  with  equally  satis- 
factory results.  Among  the  results  of  the  commission's  work 
were  the  submission  of  all  disputes  to  a  United  States  admin- 
istrator or  conciliator  if  employers  and  employees  failed  to  reach 
an  agreement ;  provision  of  a  channel  of  communication  between 
the  men  and  employers  by  organization  of  a  committee  free  from 
the  company's  influence,  to  consider  all  agreements;  recognition 
of  the  right  of  workmen  to  organize,  protected  by  the  prohibi- 
tion of  any  form  of  discrimination  against  union  men;  reem- 
ployment  of  strikers  except  inefficient  workers  and  those  guilty 
of  seditious  utterances. 

Among  the  recommendations  made  by  the  commission  the  most 
notable  were  the  guaranty  of  some  form  of  collective  relation- 
ship between  management  and  men ;  the  elimination  of  profiteer- 
ing; the  establishment  of  continuous  administrative  machinery 
for  the  immediate  and  scientific  adjustment  of  disputes ;  the 
adoption  of  the  basic  eight-hour  day,  except  for  emergencies  in 
war  industries;  a  unified  labor  administration  in  the  United 
States  to  replace  the  existing  decentralized  administration ;  the 
surrender  by  labor  of  all  practices  conducive  to  the  withdrawal 
of  maximum  efficiency ;  constructive  education  of  both  parties  to 

ss  Official  Bulletin,  February  11,  1918,  pp.  10-13. 


154  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [368 

the  industrial  conflict  in  order  to  guarantee  a  national  solution 
of  disputes  and  other  serious  labor  problems.59 

The  Bisbee  Deportations.  Consideration  of  the  work  of 
the  President's  Mediation  Commission  would  be  incomplete  with- 
out some  reference  to  its  investigation  of  the  Bisbee  deporta- 
tions. No  other  incident  in  recent  years,  outside  of  the  Mooney 
case,  has  proved  more  irritable  to  organized  and  unorganized 
labor  forces  than  the  deportation  of  workmen  from  the  Warren 
district,  Arizona,  to  Columbus,  New  Mexico,  on  the  morning  of 
July  12,  1917.  The  sheriff  and  an  armed  force  of  deputies 
numbering  about  two  thousand  men  rounded  up  1,186  workers 
and  deported  them,  according  to  the  report  of  the  commission 
submitted  to  the  President  on  November  6,  1917.  The  authori- 
ties at  Columbus  refused  the  deportees  permission  to  stay,  and 
the  train  carried  them  back  to  the  desert  town  of  Hermonas, 
New  Mexico,  a  nearby  station.  The  men  were  without  adequate 
food,  water,  and  shelter  for  two  days,  having  been  abandoned 
by  the  guards  and  left  to  shift  for  themselves.  The  situation  was 
immediately  brought  to  the  attention  of  the  War  Department 
and  on  July  14,  the  men  were  escorted  by  troops  to  Columbus, 
New  Mexico,  where  they  were  maintained  by  the  government 
until  the  middle  of  September.60 

According  to  the  report  of  the  Mediation  Commission  the  de- 
portations were  carried  out  under  the  authority  of  the  sheriff  of 
Cochise  county,  and  had  been  planned  at  a  meeting  of  citizens 
on  the  night  of  July  11,  1917,  participated  in  by  the  managers 
of  the  Copper  Queen  Consolidated  Mining  Company  and  the 
Calumet  and  Arizona  Mining  Company.  There  was  evidently 
no  consultation  of  the  United  States  attorney  in  Arizona,  nor  of 
law  officers  of  the  state  or  county,  nor  of  any  legal  adviser  what- 
soever. Rather  were  attempts  made  to  conceal  news  of  the  de- 
portations by  control  of  the  Bell  company 's  local  telephone  offices 
and  the  telegraph  lines. 

The  reason  advanced  for  the  deportations  was  that  officials 
and  citizens  believed  the  strikers  were  threatening  violence  and 
injury  to  persons  and  property.  The  commission,  however, 
found  that  this  belief  had  "no  justification  in  the  evidence  in 

sa  Official  Bulletin,  February  11,  1918,  pp.  10, 12. 
eo  Ibid.,  November  17,  1917,  p.  6. 


369]         DECENTRALIZED  LABOR  ADMINISTRATION          155 

support  of  it  presented  by  the  parties  who  harbored  it, ' '  and  no 
such  fear  had  been  communicated  to  the  Governor  or  other  au- 
thorities, either  state  or  federal,  by  those  who  planned  the  de- 
portations. "The  deportation  was  wholly  illegal  and  without 
authority  in  law  either  state  or  federal. ' '  Governor  Campbell  of 
Arizona  stated  that  "the  constitutional  rights  of  citizens  and 
others  have  been  ignored  by  processes  not  provided  by  law,  viz., 
by  deputy  sheriffs  who  refused  persons  admittance  into  the  dis- 
trict and  the  passing  of  judgment  by  a  tribunal  without  legal 
jurisdiction,  resulting  in  further  deportations. ' '  So  called  ' '  Vig- 
ilance Committees"  or  "Loyalty  Leaguers"  were  dissolved  at 
the  request  of  the  Governor.  It  was  claimed  that  the  strikers 
were  a  dangerous  group  of  enemy  aliens,  but  this  contention  is 
not  supported  by  the  Army  census  which  was  taken  at  the  time. 
According  to  this  census  199  of  the  men  deported  were  native 
born  Americans,  468  were  citizens,  472  were  registered  under 
the  selective  draft  law,  and  433  were  married.  Of  the  foreign 
born  82  were  Serbians,  and  179  were  Slavs.  There  were  only  a 
few  Germans  and  Austro-Hungarians,  other  than  Slavs. 

The  commission  recommended  to  the  President  that  steps  be 
taken  to  stop  all  illegal  practices  and  denial  of  rights  safe- 
guarded by  the  Constitution  and  statutes.  On  account  of  the 
fact  that  many  persons  subject  to  the  selective  draft  law  were 
refused  reentrance  to  the  district  there  was  sufficient  ground  for 
action  by  the  Attorney  General  of  the  United  States.  Further- 
more, the  interference  with  interstate  lines  of  communication 
justified  action  by  the  Interstate  Commerce  Commission.  These 
recommendations  were  adopted  by  the  President  and  it  was  em- 
phatically urged  that  such  actions  should  by  Act  of  Congress  be 
made  criminal  under  Federal  law.61 

The  data  of  the  preceding  pages  indicate  the  multiplicity  of 
boards  and  commissions  and  the  plethora  of  principles  that  were 
constructed  to  help  solve  the  increasingly  serious  labor  problems 
that  were  arising  throughout  our  industrial  life  during  the  first 
year  of  our  participation  in  the  world  war.  The  fundamental 
defect  of  this  new  labor  administration  was,  as  already  sug- 
gested, its  differentiation  of  organization  and  decentralization  of 

ei  Official  Bulletin,  November  17,  1917,  pp.  6,  7. 


156  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [370 

control.  Each  agent  and  department  of  the  government  was  a 
law  unto  itself  in  handling  the  labor  situation ;  this  resulted  in 
much  duplication,  positive  waste  of  money  and  effort,  and  gen- 
eral dissatisfaction  among  both  employers  and  employees.  This 
decentralization  ignored  the  conspicuous  tendency  of  recent 
years  to  centralize  labor  administration  in  industrial  commis- 
sions, —  bodies  having  comprehensive  administrative  functions 
and  powers  for  marshaling  independent  agencies  into  a  well  or- 
ganized and  centrally  directed  whole.  The  much  desired  effi- 
ciency in  labor  administration  during  the  war  was  not  possible 
without  greater  correlation  of  effort. 


CHAPTER  VI 

COORDINATION  IN  LABOR  ADMINISTRATION 

The  facts  set  forth  in  the  preceding  chapters  suggest  that  in 
spite  of  our  industrial  development  and  efficiency  in  production, 
the  United  States  up  to  the  second  year  of  our  participation  in 
the  war  possessed  no  adequate  administrative  and  judicial  ma- 
chinery for  dealing  successfully  with  the  serious  problems  that 
from  time  to  time  arose  in  the  sphere  of  industrial  relations. 
We  had  formulated  no  definite  set  of  principles  and  evolved  no 
comprehensive  labor  policy.  A  year  of  unprecedented  unrest 
was  necessary  to  demonstrate  to  the  government  that  a  decen- 
tralized labor  administration  could  not  bring  relief.  The  convic- 
tion gradually  spread  among  government  officials,  representa- 
tives of  employers  and  of  employees,  and  the  general  public,  that 
uniformity  of  methods,  concentration  of  control,  and  coordina- 
tion of  administration  in  handling  labor  was  just  as  necessary 
to  national  productive  effort  as  were  similar  policies  in  the  field 
of  fuel,  food,  ships,  and  munitions  production.  Summing  up  the 
situation  Mr.  Felix  Frankfurter,  chairman  of  the  War  Labor 
Policies  Board,  stated:  "Since  the  outbreak  of  the  war,  the 
United  States  Government  has  come  to  be  the  greatest  single 
employer  of  labor  in  the  country.  .  .  But  it  has  had  no 
operating  policy  with  regard  to  the  plants  as  a  whole.  Each 
one  has  been  operated  individually  as  a  separate  enterprise, 
quite  apart  from  others  and,  so  far  as  the  labor  supply  has  been 
concerned,  in  active  competition  with  the  others. "  x  A  more 
elaborate  interpretation  of  the  situation  was  given  by  the  Sec- 
retary of  Labor  in  the  following  words : 

Never  before  in  history  was  it  so  essential  as  now  for  a  government  at 
war  to  have  a  central  labor  administration  and  a  consistent  labor  pol- 
icy. .  .  Last  fall  it  became  apparent  that  in  order  to  prosecute  the  war 
efficiently  the  government  should  have  a  central  labor  administration  to  take 

1  Monthly  Labor  "Review,  U.  S.  Bureau  of  Labor  Statistics,  July,  1918, 
pp.  25,  26. 

157 


158  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [372 

care  of  problems  not  only  of  conciliation  but  of  many  others  matters  of 
concern  to  both  laborers  and  manufacturers  of  war  materials.  Questions  of 
apprenticeship,  of  dilution  of  labor,  of  standards  of  safety  and  sanitation, 
of  employment  of  women  in  industries  formerly  occupied  exclusively  by 
men,  and  of  wages  paid  to  women;  problems  of  housing;  of  recruiting  and 
placing  labor  —  all  needed,  and  still  need,  adjustment  to  the  present  emer- 
gency. .  . 

Up  to  a  recent  time  the  labor  questions  most  vitally  connected  with  the 
business  of  turning  out  the  materials  for  war  have  been  handled  by  a  num- 
ber of  agencies.  The  Ordnance  Bureau  has  taken  eare  of  its  own  interests, 
the  Shipping  Board  has  concerned  itself  with  its  own  production,  and  so 
on.  When  it  came  to  matters  of  labor,  each  section  managed  its  own  af- 
fairs; each  had  its  own  adjustment  commission;  and  as  a  result  there 
were  as  many  policies  for  labor  problems  as  there  were  purchasing  agencies. 
Outside  of  them  all  the  Department  of  Labor  has  tried  to  survey  the  whole 
field  and  cooperate  everywhere.  .  .  Each  bureau  was  charged  with  the 
responsibility  of  showing  results  in  its  own  field.  It  had  to  fight  its  own 
battles,  to  look  out  for  its  own  interests  everywhere. 

There  was  a  strike  in  a  large  munitions  plant  last  fall  and  mediators 
from  four  departments  of  the  government  at  once  stepped  in,  each  with 
different  orders  and  a  different  policy  for  settling  the  dispute.  Only  the 
good  sense  of  the  mediators  themselves  enabled  them  to  get  together  and 
bring  about  a  satisfactory  settlement. 

Moreover,  these  various  producing  bureaus  of  the  government,  acting 
independently,  began  to  compete  against  one  another  for  skilled  workmen, 
increasing  the  costly  and  inefficient  labor  turnover  as  men  kept  moving 
from  job  to  job  for  higher  pay.2 

1.  THE  GENESIS  OF  THE  NEW  LABOR  POLICY 
In  response  to  the  general  demand  for  more  efficient  adminis- 
tration of  labor  conditions  President  Wilson  early  in  January, 
1918,  inaugurated  a  new  labor  administration.  In  a  memoran- 
dum to  the  Secretary  of  Labor  on  January  4,  1918,  he  outlined 
a  comprehensive  program  designed  to  provide  machinery  for 
effective  mobilization  of  labor,  its  standardization  in  all  war  in- 
dustries, equitable  adjustment  of  industrial  disputes,  and  co- 
ordination of  action  between  the  departments  of  the  government 
in  matters  pertaining  to  labor.  This  program  was  the  result  of 
a  series  of  conferences  on  the  subject  of  a  labor  policy,  held 
under  the  direction  of  the  Council  of  National  Defense  and  the 
Department  of  Labor.3  The  express  purpose  of  these  confer- 

2  Saturday  Evening  Post,  June  22,  1918. 

3  The   President 's   Mediation   Commission   in    its   report   had    also    sug- 
gested the  necessity  for  centralized  administration. 


373]  COORDINATION   IN   LABOR   ADMINISTRATION  159 

ences  was  to  create  uniformity  of  administration  among  the  sev- 
eral agencies  dealing  with  the  discovery,  distribution,  and  hous- 
ing of  the  labor  force  and  otherwise  adjusting  the  labor  situation. 
The  need  was  not  only  for  new  agencies  but  also  for  more  in- 
timate relation  and  cooperation  between  the  existing  ones.  The 
government  already  possessed  administrative  machinery  for 
meeting  many  difficulties  in  the  situation,  among  which  agencies 
were  the  United  States  Board  of  Mediation  and  Conciliation,  the 
Division  of  Information  in  the  Bureau  of  Immigration,  through 
which  the  Employment  Service  operated,  the  Division  of  Medi- 
ation and  Conciliation,  and  the  Bureau  of  Labor  Statistics.  An 
extension  of  the  functions  of  these  bodies,  however,  and  the 
creation  of  new  agencies  were  necessary  antecedents  to  the  train- 
ing of  workers,  the  priority  of  labor  demands,  the  dilution  of 
labor,  the  standardization  of  conditions  of  employment,  the 
protection  of  living  conditions  (including  housing  and  trans- 
portation), and  the  provision  of  publicity.4 

The  war  labor  administration  that  grew  out  of  the  above  con- 
ferences and  which  President  Wilson  requested  the  Secretary  of 
Labor  to  organize  may  be  briefly  outlined  as  follows:  (1)  A 
means  of  furnishing  an  adequate  and  stable  supply  of  labor  to 
war  industries.  The  execution  of  this  part  of  the  program  would 
involve:  (a)  an  efficient  system  of  labor  exchanges;  (b)  a  suc- 
cessful means  of  training  workers;  (c)  a  method  of  determining 
priorities  of  labor  demand;  (d)  facilities  for  dilution  of  skilled 
labor.  (2)  Machinery  for  the  immediate  and  equitable  adjust- 
ment of  labor  disputes  in  accordance  with  the  principles  agreed 
upon  between  employers  and  employees,  in  order  that  there 
might  be  no  cessation  of  work.  This  would  necessitate  successful 
methods  and  means  of  dealing  with  demands  for  increase  in 
wages,  shorter  hours,  and  better  conditions  of  employment.  (3) 
Administrative  machinery  for  the  protection  of  labor  safeguards 
in  the  production  of  war  materials,  such  as  the  welfare  and 
safety  of  women  and  children,  and  industrial  hygiene.  (4) 
Agencies  for  improving  living  conditions,  such  as  housing,  trans- 
portation, recreation,  and  education.  (5)  An  investigating  body 
to  gather  and  present  data  collected  through  various  existing 

*  Monthly  Review,  U.  S.  Bureau  of  Labor  Statistics,  February,  1918, 
p.  77. 


160  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [374 

governmental  agencies  or  by  independent  research,  such  data  to 
furnish  the  basis  for  effective  executive  action.  (6)  An  informa- 
tion and  education  division  with  the  function  of  promoting 
sound  public  sentiment,  the  interchange  of  information  between 
the  several  departments  of  labor  administration,  and  the  devel- 
opment of  local  agencies  in  industrial  establishments  for  the 
purpose  of  carrying  out  the  national  labor  policies.5 

The  organization  of  the  above  labor  administration  program 
was  no  mean  task,  and  the  Council  of  National  Defense  suggested 
that  the  Secretary  of  Labor  summon  to  his  aid  as  advisers  and 
administrators  a  well  balanced  corps  of  experts  representing 
capital,  labor,  and  the  general  public,  to  assist  in  the  formulation 
and  execution  of  labor  policies,  with  a  view  to  introducing  great- 
er uniformity  and  coordination.  Furthermore,  if  necessary,  con- 
gressional action  was  to  be  sought  in  establishing  the  new  plans. 
The  Secretary  called  to  his  assistance  an  advisory  council  of 
seven  persons  representing  the  three  groups  of  interests  named 
above.6  To  assure  unity  of  action  among  the  several  depart- 
ments of  the  government,  the  War  and  Navy  Departments  and 
the  Shipping  Board  were  given  representation  on  the  council. 

The  appointment  of  the  Advisory  Council  was  announced  on 
January  16,  1918,  and  it  immediately  began  its  work  of  coordi- 
nating labor  administration.  On  January  28,  1918,  a  program 
of  organization  had  been  completed  and  was  approved  by  Secre- 
tary Wilson  on  the  same  day.  This  program  provided  recogni- 
tion and  extension  of  the  existing  organizations  within  the  De- 
partment of  Labor  and  for  additional  services  and  means  of 

5  Ibid.,  p.  78. 

6  This   council   was   comprised   of  the   following   persons :      Ex-Governor 
John  Lind  of  Minnesota,  as  representative  of  the  public  and  chairman  of 
the  council;   Mr.  Waddil  Catchings  of  New  York  and  Alabama,  president 
of  the  Sloss-Sheffield  Steel  and  Iron  Company,  and  Mr.  A.  A.  Landon  of 
Buffalo,  New  York,  general  manager  of  the  American  Radiator  Company,  as 
representatives  of  the  employing  interests;  Mr.  John  B.  Lennon,  ex-presi- 
dent of  the   International   Tailors'   Federation,   and  Mr.   John  J.   Casey, 
former  United  States  representative  from  Pennsylvania,  as  representatives 
of  labor.     Miss  Agnes  Nestor,  president  of  the  Chicago  Women's  Trade- 
Union  League,  was  designated  as  representative  of  the  interests  of  women 
workers.    Professor  L.  C.  Marshall  of  the  University  of  Chicago  was  chosen 
as  economist  to  the  council.    Monthly  Bevieiv,  U.  S.  Bureau  of  Labor  Sta- 
tistics, February,  1918,  p.  77. 


375]  COORDINATION   IN   LABOR   ADMINISTRATION  161 

correlation  of  effort  between  the  various  departments  of  the  gov- 
ernment in  matters  relating  to  labor  conditions.7  In  addition  to 
the  Division  of  Conciliation,  the  United  States  Employment  Ser- 
vice, and  the  investigating  bureaus  of  the  Department  of  Labor, 
six' supplementary  agencies  were  created  as  follows:  (1)  A  Con- 
ditions of  Labor  Service  to  administer  working  conditions  in 
industrial  establishments,  including  safety,  sanitation,  etc.  (2) 
An  Information  and  Education  Service  to  promote  sound  public 
sentiment  and  provide  appropriate  local  machinery  and  policies 
in  industrial  plants.  (3)  A  Woman  in  Industry  Service  to  cor- 
relate the  activities  of  various  agencies  dealing  with  matters  per- 
taining to  women  workers.  (4)  A  Training  and  Dilution  Ser- 
vice to  provide  a  supply  of  skilled  workers.  (5)  A  Housing  and 
Transportation  Service.  (6)  A  Personnel  Service.8 

The  creation  of  these  new  agencies  did  not  do  away  with  the 
several  industrial  service  sections  of  the  Ordnance  bureau, 
the  Shipping  Board,  the  Quartermaster  department,  and  other 
successful  departmental  bodies  discussed  in  the  preceding  chap- 
ter. The  objective  was  rather  to  supplement  and  especially  to 
correlate  and  centralize  the  endeavors  of  these  numerous  services, 
and  to  make  the  Department  of  Labor  a  sort  of  clearing  house 
for  them.  Moreover,  it  was  found  necessary  to  modify  the  orig- 
inal program  and  to  add  other  agencies  as  conditions  demanded, 
as,  for  example,  the  organization  of  a  Division  of  Negro  Eco- 
nomics, the  Civilian  Insignia  Service,  and  the  Investigation  and 
Inspection  Service.  The  advantages  of  the  new  system  were  set 
forth  as  follows :  (1)  It  would  guarantee  immediate  operation  of 
effective  administrative  machinery  by  using  already  existing  effi- 
cient personnel  in  the  several  bureaus;  (2)  it  would  conform  to 
accepted  theories  of  business  administration  for  it  involved  neces- 
sary centralization  of  control  with  wise  decentralization  of  ad- 
ministration by  agencies  which  come  in  touch  with  the  prob- 
lems at  issue;  (3)  the  plan  would  in  no  way  inflict  limitations 
upon  the  freedom  of  the  Department  of  Labor  in  creating  neces- 
sary supplementary  agencies;  (4)  there  would  be  definite  loca- 
tion of  responsibility  and  power  for  decisions,  for  these  were  to 

7  See  diagram,  p.  173. 

s  Monthly  Review,   U.   S.    Bureau   of   Labor   Statistics,   February,   1918, 
.  79. 


162  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [376 

rest  with  the  Secretary  of  Labor;  (5)  the  plan  would  be  flexible 
in  that  it  would  permit  consolidation  of  agencies  under  the  direc- 
tion of  the  Department  of  Labor.9 

2.     WAR  LABOR  CONFERENCE  BOARD 

At  the  time  of  his  approval  of  the  program  submitted  by  the 
Advisory  Council  (January  28,  1918),  the  Secretary  of  Labor 
requested  the  managing  director  of  the  National  Industrial  Con- 
ference Board,  a  federation  of  employers,  and  the  president  of 
the  American  Federation  of  Labor  to  constitute  a  war  labor  con- 
ference board  for  the  purpose  of  formulating  and  concluding 
agreements  upon  definite  principles  and  policies  for  the  govern- 
ment of  the  relations  between  capital  and  labor.10  This  board 
was  subsequently  appointed.11 

The  Purpose  and  Recommendations  of  the  Board,  The 
appointment  of  the  Labor  Conference  Board  was  an  attempt  to 
bring  employers  and  employees  to  a  fuller  appreciation  of  their 
mutual  interests  and  to  impress  upon  the  minds  of  each  group 
that  prejudice  and  bitterness  must  give  way  to  harmony  of 
action  and  cooperative  endeavor  in  the  common  task  of  maximum 
production,  without  which  the  war  would  inevitably  be  lost.12 
Among  the  important  questions  demanding  attention  were  a 
basis  for  wage  determination,  strikes  and  lockouts,  piece  work 

» Ibid.,  pp.  79,  80. 

10  Hid.,  April,  1918,  p.  104. 

11  The  personnel  of  the  National  War  Labor  Conference  Board  was  as 
follows:     Ex-President  William  H.  Taft,  and  Frank  P.  Walsh,  ex-chairman 
of  the  United  States  Commission  on  Industrial  Eelations,  representing  the 
public.    L.  F.  Loree,  New  York  City,  president  of  the  Delaware  and  Hudson 
Railroad  Company;  C.  Edwin  Michael,  Roanoke,  Virginia,  president  of  the 
Virginia  Bridge  and  Iron  Company;   Loyall  A.  Osborne,  New  York  City, 
vice-president  of  the  Westinghouse  Electric  and  Manufacturing  Company; 
W.  H.  Van  Dervoot,  East  Moline,  Illinois,  president  of  Root  and  Van  Der- 
voot  Engineering  Company;  B.  L.  Worden,  New  York,  vice-president  of  the 
Submarine  Boat  Corporation,  representing  the  employing  interests;   Frank 
J.  Hayes,  Indianapolis,  Indiana,  president  of  the  United  Mine  Workers  of 
America;    William   L.    Hutchison,    Indianapolis,    president    of    the    United 
Brotherhood  of  Carpenters  and  Joiners  of  America;  William  H.  Johnston, 
Washington,  D.  C.,  president  of  the  International  Association  of  Machin- 
ists;   Victor   A.    Olander,    Chicago,    representative    International    Seamen's 
Union  of  America;  T.  A.  Rickert,  Chicago,  president  of  the  United  Garment 
Workers  of  America,  representing  employees. 

12  MontMy  Eeview,  U.  S.  Bureau  of  Labor  Statistics,  April,  1918,  p.  103. 


377]  COORDINATION   IN   LABOR   ADMINISTRATION  163 

prices  and  price  fixing,  elimination  of  improper  restrictions  on 
output,  the  need  for  dilution  of  labor,  discrimination  against 
union  and  non-union  workmen,  admission  of  union  agents  to  in- 
dustrial plants,  adjustment  of  industrial  disputes,  the  right  of 
workers  to  organize  and  bargain  collectively.  Upon  the  calling 
of  the  first  session  of  the  board  by  the  Secretary  of  Labor,  Ex- 
Governor  Lind,  chairman  of  the  Advisory  Council,  said  regard- 
ing its  possibilities :  ' '  Tomorrow 's  conference  may  easily 
prove  one  of  the  most  significant  developments  in  the  history  of 
America's  participation  in  the  war.  In  a  sense  it  is  unprece- 
dented in  American  industrial  history."13  Certainly  no  recent 
event  should  do  more  to  hasten  industrial  peace  and  to  demon- 
strate the  possibility  of  such  a  peace  than  this  convocation  of  rep- 
resentatives of  labor  and  capital  for  the  purposes  of  considera- 
tion of  their  mutual  interests  and  common  difficulties. 

On  March  29,  1918,  the  War  Labor  Conference  Board  sub- 
mitted a  unanimous  report  of  its  decisions  to  the  Secretary  of 
Labor.  The  recommendations  of  the  board  provided  for  the 
creation  of  a  National  War  Labor  Board  consisting  of  an  equal 
number  of  members  and  selected  in  the  same  manner  and  by  the 
same  interests  as  had  chosen  the  conference  board  itself.  The 
new  board,  whose  functions  are  outlined  below,  was  in  general  to 
consider  all  controversies  arising  between  employers  and  em- 
ployees with  a  view  to  guaranteeing  uninterrupted  operation  of 
industry  and  maximum  production  of  war  materials.  Two 
things  were  necessary :  ( 1 )  Some  sort  of  truce  must  be  declared 
between  labor  and  capital  during  the  continuance  of  the  war, 
and  (2)  some  category  of  employment  standards  must  be  set 
forth  and  agreed  upon  by  both  sides,  so  that  productive  industry 
could  continue  without  cessation. 

3.     THE  NATIONAL  WAR  LABOR  BOARD 

The  National  War  Labor  Board  which  had  its  inception  in  the 
recommendations  of  the  War  Labor  Conference  Board  was  ap- 
pointed by  the  Secretary  of  Labor  and  was  comprised  of  repre- 
sentatives of  employers,  employees,  and  the  public.14     The  ap- 
is iud.,  p.  104. 

14  The  personnel  of  the  board  was  the  same  as  that  of  the  War  Labor 
Conference  Board.  Mr.  W.  Jett  Lauck  acted  as  secretary  to  the  board. 
See  p.  162. 


164  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [378 

pointment  of  the  board  was  approved  and  affirmed  by  President 
Wilson  in  his  proclamation  of  April  8,  1918,  in  which  he  sum- 
marized its  powers,  functions  and  duties.15 

Duties  and  Powers  of  the  Board.  The  duties  and  powers 
of  the  National  War  Labor  Board  were  outlined  in  the  report  of 
the  War  Labor  Conference  Board,  March  29,  1918,  and  the 
Proclamation  of  the  President  of  April  8,  1918.  These  duties 
and  powers  may  be  summarized  as  follows :  ( 1 )  Settlement  by 
mediation  and  conciliation  of  every  controversy  arising  between 
capital  and  labor  in  the  field  of  production  essential  to  the  con- 
duct of  the  war.  (2)  Exercise  of  the  same  jurisdiction  in  all 
other  fields  of  national  activity,  where  stoppage  or  threatened 
cessation  of  production  would  be  detrimental.  (3)  Provision,  by 
direct  appointment  or  otherwise,  for  committees  or  boards  to  sit 
throughout  the  country  where  disputes  arise,  so  that  settlement 
may  be  effected  where  and  whenever  possible  by  local  mediation 
and  conciliation.  In  case  of  the  failure  of  these  local  boards  to 
effect  a  settlement  the  parties  were  to  be  summoned  by  the  na- 
tional board.  (4)  In  case  the  efforts  of  the  national  board 
should  fail  to  settle  the  dispute,  as  a  last  resort  an  umpire  could 
be  appointed.  For  the  appointment  of  an  umpire  unanimous 
agreement  among  the  members  of  the  board  was  necessary,  but 
if  such  an  agreement  could  not  be  reached  he  was  to  be  drawn 
from  a  list  of  ten  suitable  and  disinterested  persons  nominated 
by  the  President  of  the  United  States.  On  July  12,  1918,  the 
President  announced  the  names  of  ten  persons  who  were  to  act 
as  umpires.16  (5)  The  board  was  vested  with  the  power  to  alter 
its  methods  and  practice  in  settling  disputes,  as  experience  sug- 
gested. (6)  Regular  meetings  of  the  board  were  to  be  held  at 
Washington  but  it  could  convene  at  any  other  convenient  or 
necessary  place.  (7)  No  cognizance  was  to  be  taken  by  the 
board  of  disputes  between  employers  and  employees  in  any  field 
of  industrial  activity  where  by  federal  law  or  by  agreement 
there  already  existed  means  of  settlement  which  had  not  been 
invoked.17 

is  Proclamation  of  the  President  of  the  United  States,  April  8,  1918, 
creating  the  National  War  Labor  Board. 

is  Official  Bulletin,  July  15,  1918,  p.  1. 

i?  Monthly  Eeview,  TJ.  S.  Bureau  of  Labor  Statistics,  May,  1918,  pp. 
55,  56. 


379]  COORDINATION   IN   LABOR   ADMINISTRATION  165 

The  board  was  authorized  to  appoint  a  secretary  and  to  create 
necessary  clerical  organization.  Subsequent  to  its  creation,  the 
board  provided  for  the  appointment  of  alternates,  each  member 
being  privileged  to  name  one  permanent  alternate  who  had  the 
power  to  act  and  vote  in  behalf  of  the  principal,  during  the  lat- 
ter's  absence.18  Upon  application  to  the  Secretary  of  Labor  the 
board  was  given  the  privilege  of  using  the  machinery  of  media- 
tion and  conciliation  of  the  Department  of  Labor,  thus  introduc- 
ing one  of  the  many  changes  that  led  to  coordination  of  admin- 
istration. Furthermore,  the  action  of  the  War  Labor  Board 
could  be  invoked,  in  respect  to  controversies  within  its  jurisdic- 
tion, by  the  Secretary  of  Labor  or  by  either  party  to  the  dispute 
or  an  authorized  representative  of  either  party.  Consideration 
of  such  controversies,  however,  could  be  declined  by  the  board 
if  their  character  and  importance  did  not  in  its  opinion  warrant 
such  action.  Employers  and  employees  were  given  equal  repre- 
sentation on  all  the  committees  of  the  board's  own  members  ap- 
pointed to  act  in  general  or  local  matters,  and  in  local  com- 
mittees. The  representatives  of  the  public  presided  alternately 
at  successive  sessions  of  the  board  as  agreed  upon  between  them- 
selves.19 

Principles  and  Policies  to  Govern  Industrial  Relations. 
For  the  purpose  of  guiding  the  National  War  Labor  Board  in 
its  considerations  of  industrial  disputes  a  set  of  fundamental 
principles  and  policies  was  formulated  by  the  War  Labor  Con- 
ference Board.  These  principles  included  the  following  provi- 
sions: (1)  The  abandonment  of  strikes  and  lockouts  for  the 
duration  of  the  war.  (2)  Full  recognition  of  the  right  of  both 
employers  and  workers  to  organize  in  their  trade  unions  and 
associations  respectively  and  to  bargain  collectively  through  their 
chosen  representatives.  This  right  was  in  no  way  to  be  denied, 
abridged,  or  interfered  with  by  either  side,  and  all  discrimina- 
tion for  legitimate  activities  with  such  organizations  was  for- 
bidden. In  addition,  workers  in  their  collective  action  were  to 
refrain  from  the  use  of  coercive  measures  either  in  inducing  per- 
sons to  affiliate  with  the  union  or  in  forcing  employers  to  bar- 
gain. (3)  In  union  shops  the  union  standards  of  wages,  hours, 

!8  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  99. 

is  Monthly  Eeview,  U.  S.  Bureau  of  Labor  Statistics,  May,  1918,  p.  56. 


166  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [380 

and  conditions  of  labor  were  to  be  maintained,  while  in  estab- 
lishments employing  union  and  non-union  workers  the  status  quo 
was  to  be  maintained,  allowing  the  utmost  freedom  in  joining  or 
refraining  from  membership  in  the  union.  This  provision, 
however,  did  not  prevent  the  board  from  improving  conditions 
as  to  wages,  hours,  and  conditions  of  labor  when  deemed  neces- 
sary, nor  was  there  to  be  any  relaxation  of  labor  safeguards. 
(4)  When  employed  on  tasks  ordinarily  performed  by  men,  wo- 
men were  to  be  given  equal  pay  and  were  not  to  do  work  dis- 
proportionate to  their  strength.  (5)  The  basic  eight-hour  day 
was  to  apply  in  all  cases  where  existing  law  required  it,  while  in 
all  other  cases  hours  were  to  be  determined  with  due  regard  to 
the  needs  of  the  government  and  the  welfare  of  the  workers. 
(6)  Under  all  circumstances  the  maintenance  of  maximum  pro- 
duction was  to  be  assured.  (7)  In  fixing  wages,  hours,  and  con- 
ditions of  employment  due  regard  was  to  be  paid  to  standards 
prevailing  in  the  localities  affected.  (8)  Recognition  of  the 
right  of  all  workers,  including  common  laborers,  to  a  living 
wage,  such  a  minimum  to  insure  health  and  reasonable  comfort 
to  the  worker  and  his  family.  (9)  Information  concerning  the 
available  supply  of  labor  and  its  effective  distribution  was  to  be 
secured  from  the  Department  of  Labor.20 

The  above  operating  principles  and  policies  contributed  much 
to  the  splendid  success  that  attended  the  efforts  of  the  National 
War  Labor  Board.  Not  only  were  they  comprehensive  in  char- 
acter, touching  upon  almost  every  problem  that  might  arise  in 
industrial  relations,  but  they  were  also  reasonable  in  that  due 
cognizance  was  taken  of  the  rights,  welfare,  and  interests  of  the 
three  parties  involved  in  any  industrial  controversy  —  employ- 
ers, employees,  and  the  general  public.  Furthermore,  they  in- 
corporated the  basic  standards  of  employment  set  forth  by  social 
reformers  in  the  field  of  labor  problems. 

Method  of  Presenting  Complaints.  Any  person  who  de- 
sired to  present  an  issue  between  employers  and  workers  was 
required  to  do  so  by  written  statement  of  the  specific  grievance 
and  to  designate  his  own  post  office  address  and  the  address  of  the 
persons  or  corporations  involved  in  the  dispute.  A  similar  state- 
so  MontMy  Eeview,  U.  S.  Bureau  of  Labor  Statistics,  May,  1918,  pp. 
56,  57. 


381]  COORDINATION   IN   LABOR    ADMINISTRATION  167 

merit  was  necessary  when  employers  and  employees  themselves 
presented  a  complaint.  Controversies  in  which  the  Secretary  of 
Labor  invoked  the  action  of  the  board,  together  with  documents 
transmitted  by  him,  were  filed  by  the  secretary  of  the  board.  In 
case  any  other  board  than  the  National  War  Labor  Board  pos- 
sessed jurisdiction  in  any  case  filed  with  the  secretary,  the  plain- 
tiff was  so  informed  by  him  and  he  reported  the  disposition  of 
the  case  at  the  following  meeting  of  the  National  War  Labor 
Board.  It  was  the  duty  of  the  secretary  to  digest  all  cases  pre- 
sented and  bring  them  to  the  prompt  attention  of  the  board  for 
action.21  The  cases  that  came  befdre  the  board  have  been  care- 
fully digested  and  published. 

Procedure  for  Hearing  and  Adjusting  Disputes.  In  all  con- 
troversies between  employers  and  employees  two  members  of 
the  National  War  Labor  Board,  one  from  the  employers'  side 
and  one  from  the  side  of  the  employees,  were  appointed  to  act 
for  the  board,  the  members  in  each  case  being  named  by  the  joint 
chairmen  at  the  instance  of  the  respective  groups  of  the  board. 
These  two  members  constituted  what  was  known  as  a  section  of 
the  board  to  hear  and  adjust  cases  assigned  to  them.  If  these 
sections  failed  to  effect  a  settlement  it  was  their  duty  to  sum- 
marize and  analyze  all  the  facts  in  the  case  and  present  the  same 
to  the  board  with  necessary  recommendations.  Local  committees 
in  any  city  or  district  could  be  appointed  by  the  board  to  act  in 
cases  arising  locally.  In  the  selection  of  these  local  committees, 
associations  of  employers,  organizations  of  employees,  and  other 
local  interest  groups  were  entitled  to  make  recommendations  to 
the  board.  In  localities  where  no  permanent  local  committee  had 
been  appointed  sections  of  the  national  board  were  authorized 
to  make  temporary  appointments.22 

If  after  due  deliberation  and  effort  through  the  various  agen- 
cies named  above  the  National  War  Labor  Board  found  it  im- 
possible to  settle  a  controversy,  the  board  itself  then  convened 
as  a  board  of  arbitration  to  decide  the  dispute  and  make  an 
award,  if  a  unanimous  decision  could  be  reached.  In  case  such 
unanimity  could  not  be  secured  the  board  selected  an  umpire 

21  See  Eeport  of  the  War  Labor  Conference  Board,  March  29,  1918,  sum- 
marized in  the  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  pp. 
100-104. 

22  See  Report  of  the  War  Labor  Conference  Board,  March  29,  1918. 


168  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [382 

who  sat  with  the  board,  reviewed  the  issues  and  rendered  his 
award.  The  umpire  was  a  last  resort  always,  and  was  appointed 
only  after  a  unanimous  vote  of  the  board  deemed  such  an  ap- 
pointment necessary.  If  the  board  failed  to  reach  a  unanimous 
agreement  regarding  the  choice  of  an  umpire  he  was  drawn  by 
lot  from  a  list  of  ten  "suitable  and  disinterested  persons," 
nominated  by  the  President  of  the  United  States.23 

In  compliance  with  the  principles  of  settlement  of  industrial 
disputes  set  forth  in  the  President's  proclamation  of  April  8, 
1918,  the  National  War  Labor  Board  heard  appeals  in  the  fol- 
lowing eases:  (1)  Where  there  had  been  violations  of  the  prin- 
ciples of  the  President's  proclamation  relative  to  uninterrupted 
production;  (2)  where  employers  failed  to  put  into  effect  or  em- 
ployees refused  to  accept  or  abide  by  an  award  of  any  board  of 
settlement;  (3)  where  it  became  necessary  to  determine  ques- 
tions of  jurisdiction  as  between  government  boards.  The  Na- 
tional War  Labor  Board  was  not  empowered  to  hear  appeals 
from  the  decision  of  ' '  regularly  constituted  boards  of  appeal,  nor 
from  any  other  board  to  revise  findings  of  fact. ' ' 24 

What  the  War  Labor  Board  Accomplished.  The  opera- 
tion and  results  of  the  board's  efforts  deserve  consideration. 
During  the  seven  months  of  its  work  under  war  conditions  the 
War  Labor  Board  had  unprecedented  authority  and  success  in 
enforcing  its  awards.  This  success  was  the  more  remarkable 
because  the  board  itself  was  non-statutory  in  character  and  its 
decisions  not  enforceable  by  law.  The  fundamental  principles 
upon  which  this  new  agency  of  industrial  peace  was  founded 
were  essentially  democratic  and  contained  none  of  the  repressive 
force  of  law.  ' '  What  was  desired  was  not  an  order  imposed  from 
above  or  without  but  a  solemn  contract  by  both  parties  volun- 
tarily entered  into,"  hence  "the  necessity  for  employers  and 
employees  to  agree  upon  their  own  law  and  their  own  judges. ' ' 25 
Up  to  October  31,  1918,  in  only  four  cases  was  the  board  unable 
to  reach  a  unanimous  agreement  upon  awards  and  decisions, 

23  Monthly  Review,  U.  S.  Bureau  of  Labor  Statistics,  May,  1918,  pp.  55, 
56.  See  also  the  Report  of  the  War  Labor  Conference  Board,  March  29, 
1918,  appended  to  the  published  dockets  of  the  National  War  Labor  Board. 

2*  Monthly  Review,  U.  S.  Bureau  of  Labor  Statistics,  June,  1918,  p.  56. 

25  Sixth  Annual  Report  of  the  Secretary  of  Labor,  1918,  pp.  99,  100. 


383]  COORDINATION   IN   LABOR   ADMINISTRATION  169 

and  on  three  occasions  only  during  the  war  period  were  its 
awards  not  willingly  accepted  and  applied.26 

The  first  resistance  to  a  decision  of  the  board  occurred  in  a 
dispute  between  the  Western  Union  Telegraph  Company  and  a 
group  of  its  employees  who  had  joined  the  Commercial  Teleg- 
raphers '  Union.  The  employees  accused  the  company  of  denying 
them  the  right  to  organize,  and  of  discharging  members  of  the 
union  which,  of  course,  constituted  a  violation  of  one  of  the  basic 
principles  upon  which  the  War  Labor  Board  was  established. 
The  company  was  instructed  against  such  discrimination  but  re- 
fused to  abide  by  the  award  and  recommendation  made  by  the 
board  and,  as  a  consequence,  the  facts  were  laid  before  President 
Wilson  by  the  Secretary  of  Labor,  and  on  June  11,  1918,  the 
President  communicated  with  both  the  Western  Union  Telegraph 
Company  and  the  Postal  Telegraph  Commercial  Cable  Company 
which  had  been  accused  of  similar  violations.  In  his  communi- 
cation the  President  urged  acceptance  of  the  recommendations 
of  the  War  Labor  Board  and  the  latter  company  immediately 
acknowledged  the  necessity  of  subordinating  private  to  public 
interests  and  accepted  the  award.  The  Western  Union  Com- 
pany, however,  refused  to  comply  and  denied  the  right  of  the 
board  to  enforce  the  decision,  whereupon  President  Wilson  ap- 
pealed to  Congress  for  authority  to  take  over  the  telegraph  and 
telephone  lines.  Authority  was  granted  and  these  utilities  were 
placed  under  the  control  of  the  Postmaster  General  who  immedi- 
ately stopped  all  discriminatory  practices  against  union  em- 
ployees.27 

A  second  case  of  refusal  to  accept  the  award  of  the  War  Labor 
Board  occurred  at  Bridgeport,  Connecticut,  where  early  in  Sep- 
tember, 1918,  a  group  of  organized  employees  expressed  dissat- 
isfaction with  an  award  and  ceased  work.  Ninety  per  cent  of 
the  workers  at  Bridgeport  had  accepted  the  award  and  to  the 
ten  per  cent  who  stopped  work  President  Wilson  wrote  a  letter 
in  which  he  urged  acceptance  of  the  decision  and  return  to  work. 
He  threatened  government  interference  which  would  result  in 
withdrawal  of  draft  exemptions  based  on  industrial  grounds. 
The  striking  workers  acceded  to  the  request  of  the  President, 


2o/6t<Z.,  pp.  104,  105. 
27  Ibid.,  pp.  105.  106. 


170  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [384 

accepted  the  award,  and  resumed  work.  The  Smith  and  Wesson 
Company,  of  Springfield,  Massachusetts,  refused  to  accept  the 
instructions  of  the  War  Labor  Board  against  continuation  of 
discrimination  between  organized  and  unorganized  workers. 
Again  the  President  announced  that  the  decision  of  the  board 
must  be  upheld,  regardless  of  the  attacks  that  might  be  made 
upon  it.  The  company  refused  to  abide  by  the  award  on  the 
grounds  that  it  was  contrary  to  the  traditional  policy  of  the 
plant.  On  September  13,  1918,  therefore,  the  President  directed 
the  Secretary  of  War  to  commandeer  the  Smith  and  Wesson 
establishment  and  to  operate  it  thereafter  for  the  government.28 

The  work  of  the  National  War  Labor  Board  is  one  of  the  re- 
markable accomplishments  of  our  industrial  readjustment  for 
war,  and  it  has  done  much  to  produce  historic  and  desirable 
changes  in  industrial  relations.  It  demonstrated  the  practicabil- 
ity of  an  amicable  settlement  of  industrial  grievances  by  a 
democratically  constituted  body  representing  capital,  labor,  and 
the  public.  Furthermore,  it  secured  the  adoption  and  enforce- 
ment of  principles  in  the  government  of  industry  which  a  cen- 
tury of  agitation  had  failed  to  procure.  The  limits  of  this  study 
do  not  permit  a  complete  analysis  of  the  awards  and  findings  of 
the  board,  but  a  brief  consideration  of  these  is  necessary  in  order 
to  appreciate  the  value  of  this  great  agency  of  industrial  peace. 
Recognition  of  the  right  to  organize  and  to  bargain  collectively, 
together  with  rigid  enforcement  of  these  rights  in  prohibiting 
discrimination  against  union  employees,  was  probably  the  most 
important  change  in  industrial  relations  that  has  ever  been  ef- 
fected by  a  governmental  agency  in  the  United  States.  Workers 
were  given  free  choice  in  selecting  shop  committees  from  among 
their  number,  free  from  any  ulterior  influences,  to  represent 
them  in  negotiations  with  employers,  and  the  employers  were 
instructed  to  meet  with  these  committees  for  the  purpose  of  ad- 
justing grievances  involving  wages,  hours,  and  other  conditions 
of  work. 

Reinstatement  with  back  pay  for  lost  time  was  the  penalty  for 
discharging  a  man  because  of  union  activities.  On  the  other 
hand  employees  in  exercising  the  right  to  organize  were  strictly 

zs  Sixth  Annual  Report  of  the  Secretary  of  Labor,  1918,  p.  106.  See  also 
letter  of  the  President  to  the  striking  employees  of  Bridgeport,  Conn. 


385]  COORDINATION   IN   LABOR   ADMINISTRATION  171 

forbidden  to  use  coercive  measures  of  any  kind  for  the  purpose 
of  compelling  individuals  to  join  the  union,  and  no  compulsion 
on  the  part  of  the  unions  was  permitted  to  force  employers  to 
bargain  with  them.  The  status  quo  ante  was  maintained  in  re- 
gard to  recognition  of  trade  unions,  the  board  sustaining  the 
right  of  employers  to  refuse  to  deal  with  the  union  during  the 
war  where  such  negotiation  had  not  been  tolerated  before  the 
war,  and  upholding  the  right  of  unions  to  continued  recognition 
by  employers  who  had  previously  given  such  recognition. 

Accepting  the  principle  that  the  worker  is  entitled  to  a  wage 
sufficient  to  maintain  his  family  and  himself  in  reasonable  com- 
fort, the  War  Labor  Board,  after  studies  in  the  cost  of  living,  set 
a  minimum  wage  for  male  workers  which  generally  approx- 
imated 42  cents  an  hour,  and  for  women  workers  approximately 
32  cents  an  hour.  These  minima  differed  with  the  cost  of  living 
in  different  localities,  but  an  attempt  was  made,  as  in  the  case  of 
the  shipbuilding  districts,  to  approach  uniformity  in  order  to 
prevent  migration  of  labor.  When  increases  in  wages  so  in- 
creased the  cost  of  production  as  to  threaten  discouragement  of 
business  enterprise,  the  board  suggested  to  the  proper  rate 
making  agency  that  an  advance  in  rates  be  permitted,  as  in  the 
case  of  street  railways.  The  rapidly  changing  level  of  prices 
catiSed  the  board  to  allow  a  review  of  awards  and  findings  at 
intervals  of  six  months  upon  request  of  either  party  to  the 
compact. 

The  eight-hour  day  was  recognized  in  principle  and  was  gen- 
erally incorporated  in  the  awards  of  the  board,  altho  the  nine- 
hour  day  was  sometimes  allowed.  The  rights  of  women  in  in- 
dustry were  rigidly  safeguarded  with  respect  to  wages,  health, 
and  general  welfare.  In  all  cases  equal  pay  for  equal  work  was 
an  accepted  principle  of  the  board's  decisions. 

Effective  enforcement  of  awards  was  made  possible  by  the 
provision  for  trained  examiners  who  conducted  public  hearings, 
where  both  sides  were  given  an  opportunity  to  submit  data  hav- 
ing to  do  with  the  questions  involved.  It  was  the  duty  of  these 
examiners  to  summarize  and  analyze  the  data  so  presented  and 
to  report  to  the  board.  Examiners  were  also  assigned  to  super- 
vise the  application  of  awards  and  to  interpret  in  behalf  of  the 
board  those  points  which  were  not  clear  and  to  which  both  par- 


172  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [386 

ties  failed  to  agree.  These  examiners  rendered  valuable  service 
in  organizing  the  shop  committees  that  were  so  largely  re- 
sponsible for  the  establishment  of  industrial  peace.  The  im- 
portance of  the  work  of  the  National  War  Labor  Board  cannot 
yet  be  fully  appraised,  for  the  effort  it  put  forth  will  continue  to 
bear  fruit  for  some  time  to  come.  It  is  clear,  however,  that  in 
defending  the  principle  of  just  and  proper  conditions,  the  right 
of  organization  and  of  collective  bargaining,  a  minimum  comfort 
wage,  and  communication  between  management  and  workers 
through  shop  committees  allowing  rational  consideration  of 
grievances,  the  board  has  made  a  significant  contribution,  not 
only  toward  the  winning  of  a  war  for  democracy,  but  also  toward 
the  solution  of  perplexing  industrial  problems  and  the  realiza- 
tion of  what  promises  to  be  the  next  great  step  in  social  prog- 
ress —  the  democratization  of  industry.29 

There  is  no  better  index  of  the  value  of  the  work  performed 
by  the  War  Labor  Board  than  the  cases  it  adjusted.  Its  efforts 
were  comprehensive  and  constructive,  altho  not  always  accept- 
able to  both  parties  concerned.  To  October  1,  1918,  the  offices  of 
the  board  considered  531  controversies,  of  which  266  were  still 
pending.  Awards  had  been  made  in  44  cases ;  136  cases  had  been 
referred  to  other  governmental  agencies;  2  were  withdrawn;  30 
were  settled;  9  were  settled  without  intervention  of  the  board; 
jurisdiction  was  denied  in  8  cases ;  and  32  were  dropped  or  sus- 
pended.30 By  November  11,  1918,  when  the  armistice  was 
signed,  83  awards  had  been  made,  and  by  the  middle  of  Febru- 
ary, 1919,  the  number  of  findings  announced  totaled  198,  in- 
volving 34  industries  scattered  over  35  states.  The  number  of 
cases  that  had  entered  on  the  docket  up  to  April  15,  1919,  aggre- 
gated 1,244,  only  33  of  which  had  not  been  disposed  of  in  some 
way.  Of  this  number  of  cases,  awards  were  issued  in  394 ;  agree- 
ments or  dismissal  were  reached  in  428  cases;  and  389  were  re- 
ferred to  subsidiary  agents  having  original  jurisdiction.31 

29  Fifty  shop  committees  had  been  organized  by  February,  1919.  See 
Shop  Committees  in  Action,  by  William  L.  Stoddard,  The  Survey,  Vol. 
XLII,  No.  1  (April  5,  1919),  pp.  28-30.  This  number  has  been  greatly  in- 
creased since  that  date. 

so  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  105. 

3iT7ie  Survey,  Vol.  XLII,  No.  5  (May  3,  1919),  p.  192.  The  National 
War  Labor  Board  passed  out  of  existence  at  the  end  of  the  fiscal  year  1919. 


387] 


COORDINATION  IN  LABOR  ADMINISTRATION 


173 


t   g  -5  -Is 
.s   ^   J; 


v 


II  s  § 


174  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [388 

4.  COORDINATION  OF  THE  WORK  OF  THE  DEPARTMENT  OF  LABOR 
The  creation  of  the  War  Labor  Conference  Board  and  the  re- 
sultant organization  of  the  National  War  Labor  Board  were  only 
the  initial  steps  in  an  extensive  program  of  reorganization  for 
war  labor  administration.  The  aim  of  this  vast  program  was  the 
centralization  of  control  coupled  with  a  judicious  decentraliza- 
tion of  administration.  Control  was  centralized  under  the  direc- 
tion of  the  Secretary  of  Labor,  assisted  by  the  War  Labor  Pol- 
icies Board  comprised  of  representatives  of  the  various  produc- 
tion departments  of  the  government  and  heads  of  bureaus  and 
services  of  the  Department  of  Labor.32  At  the  beginning  of  the 
fiscal  year,  1918,  the  Department  of  Labor  consisted  of  four 
bureaus,  together  with  such  agencies  as  had  been  created  in 
the  office  of  the  Secretary  of  Labor  for  conciliation  and  media- 
tion in  labor  disputes.  At  the  close  of  that  year  there  were 
thirteen  separate  bureaus  and  services,  and  two  boards,  the  one 
a  court  of  last  resort  —  the  War  Labor  Board  —  and  the  other 
an  agency  to  correlate  the  work  of  the  Department  of  Labor  with 
other  production  departments  of  the  government  —  the  War 
Labor  Policies  Board.33  Correlation  of  the  activities  of  existing 
agencies  was  the  first  logical  step  in  readjustment  for  the  admin- 
istration of  the  increasingly  difficult  labor  situation ;  the  creation 
of  necessary  additional  agencies  as  conditions  necessitated  was 
the  second  step.  The  unfortunate  situation  was  that  efficient 
administrative  machinery  had  not  been  created  before  the  coun- 
try entered  upon  the  prosecution  of  a  great  war.  It  was  not 
until  July  15,  1918,  about  four  months  before  the  armistice  was 
signed,  that  the  Secretary  of  Labor  announced  the  completion  of 
the  War  Labor  Administration  Cabinet  which  was  a  very  com- 
prehensive body  of  officials  in  touch  with  the  numerous  boards, 
serevices,  and  bureaus  interested  in  the  solution  of  our  labor 
problems.34  ' '  Since  industry  is  but  the  application  of  man  power 

32  Monthly  Labor  Review,  U.  S.  Bureau  of  Labor  Statistics,  August,  1918, 
p.  63. 

33  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  9. 

34  This  cabinet  was  composed  of  the  following  representatives:      Secre- 
tary of  Labor  Wilson,  Labor  Administrator;    Felix   Frankfurter,  assistant 
to  the  Secretary  and  chairman  of  the  War  Labor  Policies  Board;  Assistant 
Secretary  of  Labor,  Louis  F.  Post;  Solicitor  John  W.  Abcrcrombie ;  Royal 
Meeker,   Commissioner,   Bureau    of   Labor    Statistics;    Anthony    Caminetti, 


389]  COORDINATION   IN   LABOR   ADMINISTRATION  175 

to  raw  material,  the  efficiency  of  industry  was  wholly  dependent 
upon  the  efficiency  of  labor.  The  greatest  essential,  therefore, 
for  our  Government  was  the  adoption  of  a  central  labor  admin- 
istration and  a  consistent  labor  policy. ' ' 35 

5.     WAR  LABOR  POLICIES  BOARD 

On  May  13,  1918,  the  Department  of  Labor  announced  the 
creation  of  the  War  Labor  Policies  Board,  with  Professor  Felix 
Frankfurter  as  chairman,  who  was  also  made  assistant  to  the  Sec- 
retary of  Labor.36  In  determining  wages  and  working  condi- 
tions, in  the  supervision  of  housing  and  other  functions,  the 
numerous  boards  and  agencies  that  existed  in  the  production 
departments  of  the  government  were  often  in  conflict  regarding 
authority.  It  was  highly  desirable,  therefore,  to  unify  the  activ- 
ities of  these  agencies,  and  to  bring  them  into  cooperation.  The 

Commissioner  General,  Bureau  of  Immigration;  Julia  C.  Lathrop,  Chief, 
Children's  Bureau;  John  B.  Densmore,  Director  General,  U.  S.  Employment 
Service;  Eoger  W.  Babson,  Director,  Information  and  Education  Service; 
Grant  Hamilton,  Director,  Working  Conditions  Service ;  Herman  Schneider, 
Director,  Training  and  Dilution  Service;  Ethelbert  Stewart,  Director,  In- 
vestigation and  Inspection  Service;  Mary  Van  Kleeck,  Director,  Woman  in 
Industry  Service;  Otto  M.  Eidlitz,  Director,  Bureau  of  Industrial  Housing 
and  Transportation;  Charles  T.  Clayton,  Director  Civilian  Insignia;  Samuel 
J.  Gompers,  chief  clerk  of  the  Cabinet.  Monthly  Labor  Eeviev?,  U.  S.  Bu- 
reau of  Labor  Statistics,  August,  1918,  pp.  63,  64. 

ss  Secretary  of  Labor  Wilson,  Sixth  Annual  Report,  1918,  p.  9. 

36  The  personnel  of  the  War  Labor  Policies  Board  was  as  follows :  De- 
partment of  Labor,  Felix  Frankfurter,  chairman ;  Max  Lowenthal,  assistant 
to  the  chairman;  Miss  Mary  Van  Kleeck,  Director  of  Woman  in  Industry 
Service;  War  Department,  Dr.  E.  M.  Hopkins,  assistant  to  the  Secretary  of 
War;  Navy  Department,  F.  D.  Roosevelt,  Assistant  Secretary  of  the  Navy; 
Department  of  Agriculture,  G.  I.  Christie,  assistant  to  the  Secretary  of 
Agriculture,  in  charge  of  Farm  Labor  Activities;'  War  Industries  Board, 
Hugh  Frayne,  general  organizer,  American  Federation  of  Labor;  Fuel  Ad- 
ministration, John  P.  White,  ex-president  United  Mine  Workers  of  America; 
Shipping  Board,  Robert  P.  Bass,  ex-governor  of  New  Hampshire;  Emer- 
gency Fleet  Corporation,  Charles  Piez,  general  manager;  Food  Administra- 
tion, M.  B.  Hammond,  Ohio  State  University;  Railroad  Administration, 
W.  I.  Tyler,  assistant  director  Division  of  Operations;  Committee  on  Public 
Information,  W.  L.  Chenery,  Chicago;  Executive  Secretary,  George  L.  Bell, 
San  Francisco;  Industrial  Adviser,  H.  F.  Perkins,  Chicago;  Labor  Adviser, 
John  R.  Alpine,  vice-president,  American  Federation  of  Labor;  Economic 
Adviser,  L.  C.  Marshall,  Dean,  University  of  Chicago.  Monthly  Labor  Re- 
view, U.  S.  Bureau  of  Labor  Statistics,  July,  1918,  p.  25. 


176  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [390 

War  Labor  Policies  Board  was  designed  to  accomplish  this.  As 
finally  constituted  the  board  represented  the  Department  of  La- 
bor, the  National  War  Labor  Board,  the  Department  of  Agricul- 
ture, the  Shipping  Board,  the  Railroad  Administration,  the  War 
Industries  Board,  the  Fuel  Administration,  the  Food  Administra- 
tion, the  War  Department,  the  Navy  Department,  the  Emergency 
Fleet  Corporation,  the  Committee  on  Public  Information,  and 
the  American  Federation  of  Labor.  The  wisdom  of  this  inti- 
mate relation  between  the  administrative  agencies  entrusted  with 
the  prosecution  of  the  war  can  hardly  be  overestimated.  It  was 
evident  that  the  first  year  of  the  war  had  uncovered  many  diverse 
policies  emanating  from  a  single  government,  and  the  inevitable 
result  was  that  ''the  Nation,  operating  through  different  agen- 
cies, was  saying  and  doing  irreconcilable  things.  Each  of  the 
war  policies  announced  by  each  of  the  branches  of  the  admin- 
istration could  not  be  right  because  many  of  them  were  mutually 
contradictory. ' ' 37 

Duties  of  the  War  Labor  Policies  Board.  The  primary 
duty  of  the  War  Labor  Policies  Board  was  the  consideration  for 
war  industries  of  all  questions  pertaining  to  wages,  hours,  the 
supply  and  proper  distribution  of  labor,  and  the  standardization 
of  working  conditions.  More  specifically  the  duties  of  the  board 
included:  (1)  Coordination  of  every  government  agency  whose 
activities  in  any  way  involved  the  employment  or  direction  of 
labor;  (2)  centralization  of  the  various  production  departments 
of  the  government  in  so  far  as  these  related  themselves  to  the 
problems  of  labor,  in  which  capacity  the  Policies  Board  exer- 
cised merely  an  administrative  function,  for  its  decisions  were 
carried  out  by  the  agencies  and  departments  represented  in  its 
membership;  (3)  fixation  of  wage  standards  for  all  industries  in 
a  given  section  of  the  country  after  thoro  investigation  of  the 
conditions  of  living,  including  the  cost  of  living  and  services, 
such  information  to  be  secured  from  organizations  of  workers, 
associations  of  employers,  and  government  bureaus;  (4)  careful 
direction  of  the  sources  of  labor  supply,  allocation  of  the  supply 
according  to  the  productive  needs  of  the  country  and  the  priority 
of  labor  claims;  (5)  determination  of  the  needs  of  industry  with 

37  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  114. 


391]  COORDINATION   IN   LABOR   ADMINISTRATION  177 

regard  to  housing  and  transportation  facilities;  (6)  regulation 
of  hours  of  labor  in  various  industries.38 

When  the  Policies  Board  reached  final  decisions  in  cases  aris- 
ing in  industrial  relations  in  war  industries,  the  execution  of 
these  decisions  was  left  directly  in  charge  of  each  department 
represented  on  the  board,  in  so  far  as  the  particular  decision 
affected  that  department.  As  an  aid  to  the  board  in  formulating 
a  set  of  operating  principles  and  policies  several  temporary  com- 
mittees were  selected  with  membership  from  branches  of  the 
government  represented  on  the  Policies  Board.  Committees  were 
organized  also  to  inquire  into  government  contract  clauses  affect- 
ing industrial  relations,  to  control  labor  recruiting,  to  secure 
exemption  of  skilled  workers  from  military  service,  to  centralize 
industrial  statistics,  to  standardize  wages  and  conditions  of 
labor,  and  to  provide  war  industry  badges.39 

Contrary  to  a  general  impression  regarding  the  War 
Labor  Board  and  the  War  Labor  Policies  Board,  the  functions 
of  the  two  bodies  were  not  identical,  altho  they  were  both  integral 
parts  of  the  Department  of  Labor.  The  duties  of  the  National 
War  Labor  Board  were  fundamentally  judicial  in  character.  It 
was  primarily  a  court  of  last  resort  and  assumed  no  jurisdic- 
tion in  any  controversy  between  employers  and  employees  in 
any  field  of  industrial  or  other  activity  where  there  was  by 
agreement  or  federal  law  a  means  of  settlement  which  had  not 
been  invoked.40  In  all  cases  where  the  enunciated  principles  of 
the  board  were  involved  it  exercised  jurisdiction.  The  board, 
however,  sometimes  assumed  legislative  functions  when  the  enun- 
ciation of  a  new  principle  to  govern  industrial  relations  was  con- 
templated. Its  findings  were  final  and  binding  in  all  disputes 
between  employers  and  employees  where  its  principles  of  ad- 
justment were  in  any  way  involved.41 

The  War  Labor  Policies  Board,  on  the  other  hand,  devoted 
itself  to  administrative  work.  It  was  created  to  determine  and 
develop  policies  for  a  unified  labor  administration,  and  to  co- 
ordinate into  one  consistent  policy  the  differentiated  and  fre- 

ss  Monthly  Labor  Review,  U.  S.  Bureau  of  Labor  Statistics,  July,  1918, 
pp.  24,  26. 

39  Ibid.,  pp.  24,  25. 

40  Official  Bulletin,  June  12,  1918,  p.  4. 

41  Ibid.,  June  8,  1918,  p.  13. 


178  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [392 

quently  inconsistent  methods  of  important  governmental  depart- 
ments dealing  with  the  problems  of  labor  that  affected  produc- 
tion, always  excluding  from  its  field  of  administration  agree- 
ments between  employers  and  their  workers. 

Altho  the  basic  functions  of  these  two  important  boards  were 
different,  the  fundamental  principles  that  governed  their  pro- 
cedure and  decisions  were  similar,  for  on  July  12,  1918,  the 
Policies  Board  adopted  the  principles  laid  down  by  the  War 
Labor  Board.42  In  March,  1919,  the  Policies  Board  was  dis- 
continued. 

6.  THE  UNITED  STATES  EMPLOYMENT  SERVICE 
The  war  activities  of  the  United  States  soon  gave  rise  to  an 
extraordinary  demand  for  laborers  in  those  industries  that  were 
manufacturing  large  quantities  of  ships,  munitions,  ordnance, 
and  other  materials  necessary  to  equip  our  military  and  naval 
forces.  Excessive  labor  turnover  soon  appeared.  The  move- 
ment of  workers  from  the  less  profitable  forms  of  production  to 
the  "war  industries"  which  were  paying  much  higher  wages 
resulted  in  a  marked  scarcity  of  labor  in  some  communities.  The 
direction  of  the  labor  supply,  therefore,  became  an  urgent  need. 
The  recruitment  and  distribution  of  labor  was  administered 
through  the  United  States  Employment  Service,  which,  as  has 
been  shown,  was  established  by  the  Department  of  Labor  in 
1914.  It  will  be  recalled  that  authority  for  this  service  was  de- 
rived from  the  statutory  powers  of  the  Division  of  Information 
in  the  Bureau  of  Immigration,43  supplemented  by  the  broader 
powers  of  the  Department  of  Labor  itself  in  regard  to  the  in- 
terests of  the  wage  earners  and  the  advancement  of  their  oppor- 
tunities for  profitable  employment.44  The  service  began  in  a 
small  way  with  the  creation  of  the  Division  of  Information  in 
1907,  and  the  establishment  in  that  year  of  a  public  employment 
system  in  connection  with  the  immigration  station  at  New  York. 
Later  (1914)  the  Department  of  Labor  entered  into  cooperative 

42  See  pp.  215  ff.  Also  Monthly  Labor  Review,  U.  S.  Bureau  of  Labor 
Statistics,  August,  1918,  pp.  65,  66. 

43 ' '  An  Act  to  regulate  the  immigration  of  aliens  into  the  United 
States,"  approved  February  20,  1909,  sec.  40.  Also  "An  Act  to  regulate 
the  immigration  of  aliens  to,  and  residence  of  aliens  in,  the  United  States, ' ' 
approved  February  5,  1917,  see.  30. 

44  An  Act  to  create  a  Department  of  Labor,  March  4,  1913,  sec.  1. 


393]  COORDINATION   IN   LABOR   ADMINISTRATION  179 

relations  with  the  Post  Office  Department  by  which  the  facilities 
of  both  these  departments  were  used  jointly  to  relieve  the  labor 
shortage  during  the  harvest  season  in  the  wheat  growing  states. 
In  1916  the  service  was  still  further  extended  by  the  creation  of 
a  Women's  and  Girls'  Division  and  of  a  division  for  young  men 
and  boys.  The  end  of  the  Mexican  border  trouble  in  1917 
strained  the  facilities  of  the  service,  because  returned  national 
guardsmen  were  seeking  employment.  Through  the  various 
branch  offices  scattered  over  the  United  States  profitable  employ- 
ment was  found  for  no  less  than  15,577  of  the  national  guards- 
men.45 

These  early  experiences  furnished  an  advantageous  basis  for 
the  reorganization  and  expansion  of  the  service  necessitated  by 
conditions  incident  to  the  greatest  war  in  history.  The  service 
cooperated  with  the  United  States  Shipping  Board  in  the  loca- 
tion of  large  numbers  of  ship  carpenters,  calkers,  and  skilled 
workers  available  for  immediate  employment.  For  this  purpose 
a  survey  was  made.  The  Department  of  Labor  established  such 
additional  war-emergency  employment  offices  as  were  deemed 
necessary  for  the  recruitment  of  these  workmen,  detailed  trav- 
eling field  agents  to  locate  qualified  workers  for  the  yards,  and 
explained  to  the  shipyard  owners  the  way  in  which  to  derive  the 
most  help  from  the  use  of  the  central  service  organized  by  the 
Department  of  Labor.46 

The  construction  of  cantonments  entailed  the  employment  of 
a  vast  army  of  laborers.  To  aid  in  the  recruitment  of  the  neces- 
sary labor  the  Department  of  Labor  secured  from  the  War  De- 
partment a  list  showing  the  location  of  the  army  cantonments 
and  training  camps  to  be  constructed,  and  the  names  and  ad- 
dresses of  contractors  awarded  the  work  of  building  them.  Con- 
tractors were  instructed  by  the  War  Department  to  inform  the 
United  States  Employment  Service  of  the  number  and  the  class 
of  workmen  required.  Not  only  did  the  Employment  Service 
recruit  for  this  task  thousands  of  workers  —  carpenters  and 
other  skilled  mechanics,  as  well  as  skilled  and  unskilled  labor- 
ers —  but  when  the  construction  work  was  completed  representa- 
tives of  the  service  were  detailed  to  register  the  names,  addresses, 

43  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  pp.  199,  200. 
46  Ibid.,  p.  200. 


180  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [394 

and  occupations  of  the  workmen  immediately  so  that  when  they 
were  finally  laid  off  they  could  be  directed  to  the  industrial 
plants  that  were  in  need  of  labor. 

A  serious  labor  shortage  threatened  to  result  in  a  disastrous 
loss  of  crops  in  the  vicinity  of  Norfolk,  Virginia,  during  the 
early  part  of  July,  1917.  Upon  investigation  the  Department  of 
Labor  discovered  that  the  major  difficulty  was  inadequate  trans- 
portation facilities.  The  trouble  was  called  to  the  attention  of 
the  Food  Administrator,  who  immediately  communicated  with 
the  vessel  owners.  At  a  later  conference,  held  in  Norfolk,  the 
Food  Administration  and  the  Department  of  Labdr  were  repre- 
sented jointly.  The  result  was  that  two  additional  sailings 
weekly  from  Norfolk  were  obtained  for  the  benefit  of  the  pro- 
ducers in  that  vicinity,  and  loss  of  foodstuffs  was  prevented. 
Moreover,  an  additional  representative  was  placed  in  the  Nor- 
folk employment  office  to  aid  in  securing  workers  for  local  in- 
dustries. 

Centralization  of  the  employment  agencies  of  the  country  was 
a  necessary  expedient  during  the  war.  To  effect  such  central- 
ization the  Department  of  Labor  was  willing  to  go  to  the  utmost 
effort.  Employers  engaged  in  essential  industries  were  bidding 
against  one  another  for  labor,  thereby  stimulating  disastrous 
labor  turnover  and  industrial  unrest.  "In  consequence,  wage 
earners  engaged  in  very  necessary  war  service  were  solicited  to 
accept  other  service  no  more  essential  than  that  upon  which  they 
were  engaged."  Under  such  conditions  it  was  imperative  that 
the  government,  through  the  Department  of  Labor,  try  to  cen- 
tralize the  work  of  recruiting  labor  under  direction  of  public 
agencies.  This  development,  however,  was  retarded  by  the  fact 
that  public  agencies  themselves  were  not  united.  Coordination 
of  federal  agencies  with  those  operated  by  the  several  states  and 
municipalities  was  the  first  requisite  to  success  in  solving  this 
problem.  Measures  were  taken  to  accomplish  such  coordination. 
"As  a  result,  practically  all  the  public  agencies  other  than  the 
Federal  were  united  with  the  United  States  Employment  Service 
prior  to  January  1,  1918.  Under  this  arrangement  many  em- 
ployees of  the  non-Federal  units  were  designated  as  departmental 
employees  at  nominal  consideration ;  in  other  cases  the  State  and 


395]  COORDINATION   IN   LABOR   ADMINISTRATION  181 

municipal  offices  were  simply  absorbed  and  lost  their  separate 
identity."47 

On  June  14,  1917,  the  Secretary  of  Labor  created  the  United 
States  Public  Service  Reserve.  The  purpose  of  this  organization 
was  to  be  the  registration  of  patriotic  citizens  who  desired  to 
offer  their  services  to  the  government,  either  with  or  without 
compensation,  and  to  work  either  directly  on  government  enter- 
prises or  in  enterprises  engaged  in  service  for  the  government. 
The  reserve  was  empowered  to  make  for  the  war  industries  lists 
of  available  volunteers,  showing  their  experience  and  ability, 
and  indicating  the  location  of  the  persons  registering.  The  spe- 
cial functions  of  the  reserve  and  its  activities  are  discussed  later. 

Mobilization  of  women  for  war  work  constituted  one  of  the 
most  serious  labor  problems  incident  to  the  great  crisis,  because 
of  the  danger  of  exploitation  of  unorganized  workers  under  the 
guise  of  patriotism,  and  the  menace  of  over-fatigue  that  speed- 
ing up  of  industrial  machinery  and  personnel  produced.  The 
Secretary  of  Labor  summarized  the  problem  in  the  following 
words : 

Even  before  the  declaration  of  war  it  became  evident  that  conditions  de- 
manded the  use  of  some  central  agency  for  the  mobilization  of  woman  work- 
ers. Demands  for  workers  from  concerns  holding  contracts  with  European 
belligerents  were  extremely  heavy,  with  the  added  certainty  that  if  the 
United  States  became  involved  those  demands  would  be  multiplied. 

In  the  mills  and  factories  upon  which  the  Government  had  to  rely  for 
munitions  and  materials  of  war,  and  upon  which  the  civilian  population 
must  depend  for  its  daily  needs,  there  are  nearly  a  million  and  a  half  woman 
wage  earners.  But  notwithstanding  the  importance  of  these  woman  wage 
earners  in  winning  the  war,  there  was  grave  danger  to  industry,  to  labor, 
and  to  society  unless  at  the  very  outset  a  discriminating  control  over  the 
mobilization  of  woman  labor  in  war  industries  was  exercised.  The  demoral- 
ization of  the  labor  market,  due  to  the  transformation  of  so  large  a  pro- 
portion of  the  country's  industries  into  manufactories  of  war  materials  and 
to  the  vast  requirements  of  shipyards  and  cantonments,  was  accentuated 
by  the  withdrawal  from  industry  of  more  than  half  a  million  men  affected 
by  the  draft.  The  dangers  to  labor  and  life,  as  well  as  to  military  success 
lay  in  the  overstraining  of  the  regular  workers  and  in  an  unintelligent  draft 
of  industrial  recruits. 

It  was  urgent  at  the  beginning  of  the  war  to  develop  a  system  of  assort- 
ing and  collecting  data  involving  both  man  and  woman  labor  on  war  con- 
tracts in  order  to  present  a  clear  chart  of  the  location  and  character  of  war 
industries  and  the  present  and  prospective  need  for  woman  labor  in  them. 

47  Sixth  Annual  Report  of  the  Secretary  of  Labor,  1918,  p.  201. 


182  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [396 

This  was  the  initial  step  in  supplying  the  woman  labor  necessary  to  fill  war 
orders  under  reasonable  working  conditions.48 

At  the  time  we  entered  the  war  the  Department  of  Labor  did 
not  possess  sufficient  funds  for  handling  the  problem  of  women 
in  war  industries.  The  National  League  of  Woman's  Service, 
however,  offered  assistance  in  the  form  of  adequately  financed 
plans,  and  the  Department  of  Labor  accepted  these  on  the  con- 
dition that  all  the  activities  of  the  league  affecting  wage-earning 
women  should  be  subject  to  the  control  of  the  Secretary  of  Labor, 
and  that  the  department  should  have  an  official  representative 
on  the  governing  board  of  the  bureau  which  the  league  estab- 
lished in  Washington.  The  department  secured  from  the  Secre- 
tary of  War  and  the  Secretary  of  the  Navy  a  list  of  contracts 
which  was  used  by  the  United  States  Employment  Service  and 
the  bureau  of  registration  and  information  of  the  National 
League  for  Woman's  Service  as  a  basis  for  the  mobilization  of 
woman  labor  for  war  industries.  These  arrangements  made  pos- 
sible the  immediate  formulation  of  methods  and  policies  relative 
to  the  supplying  of  women  for  these  industries.  Over  two  thou- 
sand contracts  a  month  from  the  United  States  government  had 
to  be  assorted  and  collated,  the  holders  of  such  contracts  had  to 
be  communicated  with  in  order  to  ascertain  their  needs  for  wo- 
men workers,  and  the  supply  of  workers  had  to  be  recruited. 
Under  the  agreement  made  with  the  National  League  for  Wo- 
man's Service,  the  Department  of  Labor  on  October  1,  1917,  took 
over  the  phases  of  the  work  which  had  been  conducted  by  the 
league  for  the  previous  six  months. 

The  successful  harvesting  of  crops  was  a  first  essential  of  suc- 
cess in  the  struggle  with  the  Central  Powers.  Recruiting  harvest 
hands  became  one  of  the  most  important  duties  of  the  Depart- 
ment of  Labor,  beginning  with  the  season  of  1914.  There  was 
annual  need  for  harvest  hands  in  the  wheat  belt,  extending  from 
Texas  through  Oklahoma,  Kansas,  Nebraska,  North  and  South 
Dakota,  eastern  Montana,  to  the  Canadian  border.  In  1917  the 
Department  of  Labor  and  the  Department  of  Agriculture  co- 
operated under  a  memorandum  of  understanding  concluded  be- 
tween the  two  departments  on  April  24,  1917.  "With  local 
authorities,  railway  officials,  and  other  public  and  private  in- 

4«  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  202. 


397]  COORDINATION   IN   LABOR   ADMINISTRATION  183 

terests  these  departments  worked  in  the  fields  of  Texas,  Okla- 
homa, Kansas,  Nebraska,  Minnesota,  Missouri,  Iowa,  Montana, 
and  the  Dakotas.  Splendid  results  followed,  not  a  bushel  of 
grain  being  lost  for  lack  of  harvesters.  Nor  did  the  cooperation 
end  with  the  American  harvests.  By  agreement  with  the  Cana- 
dian government  the  two  departments  extended  their  service 
across  the  Canadian  line  in  aid  of  harvesting  the  wheat  crops  of 
Manitoba  and  Saskatchewan,  in  return  for  which  Canada  helped 
the  United  States  to  obtain  extra  workers  for  the  potato  crops 
and  lumbering  operations  in  Aroostook  County,  Me. ' ' 49  Con- 
stant communication  was  maintained  between  the  United  States 
Employment  Service  and  farm  organizations,  railway  officials, 
and  service  agents  in  the  field  in  order  to  ascertain  the  needs  of 
particular  communities.  Eastern  and  middle-western  states  also 
received  immeasurable  benefit  from  the  activities  of  the  Employ- 
ment Service  in  regard  to  the  recruitment  and  distribution  of 
agricultural  labor. 

Reorganization  of  the  Employment  Service.  Long  be- 
fore the  war  students  of  the  labor  problem  had  urged  the  crea- 
tion of  a  coordinated  and  centralized  system  of  national  labor 
exchanges,  but  it  took  a  great  emergency  to  reveal  the  necessity 
for  such  a  system.  There  was  much  experimentation.  For  ten 
years  previous  to  October  15,  1917,  the  Employment  Service  was 
a  part  of  a  division  of  the  Department  of  Labor,  namely,  the 
Division  of  Information  of  the  Bureau  of  Immigration,  with  less 
than  one  hundred  branches  —  mere  desks  in  the  immigration 
offices.  At  the  time  of  its  reorganization  in  the  office  of  the  Sec- 
retary of  Labor  on  the  above  date  it  had  a  personnel  of  less  than 
one  hundred  persons,  and  a  placement  of  1,000  workers  a  day.50 
On  the  eve  of  the  inauguration  of  the  first  step  of  the  govern- 
ment's centralized  war  labor  policy  —  August  1,  1918  —  the  Em- 
ployment Service  had  more  than  500  branch  offices  for  the  dis- 
tribution of  labor  and  20,000  agents  for  the  work  of  labor  re- 
cruiting. It  was  placing  at  that  time  more  than  10,000  workers 
a  day  in  war  industries,  some  of  the  branches  placing  more 
workers  than  the  entire  service  seven  months  previous.  When 
reorganization  was  fairly  complete  the  branch  offices  constituted 

49  ibid.,  p.  205. 

so  U.  S.  Employment  Service  Bulletin,  July  30,  1918,  p.  6. 


184  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [398 

a  network  offering  facilities  for  labor  recruitment  to  every  coun- 
ty and  township  in  the  country.  In  the  most  important  agricul- 
tural and  industrial  sections  special  divisions  were  created  to 
care  for  shipyard,  dock,  railroad,  farm,  and  woman  labor,  with 
experts  to  determine  the  fitness  of  each  worker  for  the  particular 
job.  A  system  of  clearances  was  established  between  districts, 
states,  and  communities  in  which  employers  and  employees, 
through  the  medium  of  state  advisory  and  community  labor 
boards  and  state  organization  committees,  were  given  a  share 
with  other  officials  in  the  administration  of  the  program  insti- 
tuted by  the  Employment  Service.  It  is  worthy  of  note  that 
"every  step  of  the  reorganization  and  upbuilding  process  has 
been  taken  with  the  advice  and  counsel  of  experts  in  industrial 
management  and  labor. ' ' 51  The  Employment  Service  soon  be- 
came one  of  the  most  important  government  agencies  for  the 
prosecution  of  the  war  and  preparation  for  the  reconstruction 
period. 

Such  extensive  reorganization  and  expansion  could  be  accom- 
plished only  with  the  expenditure  of  a  considerable  amount  of 
money.  Prior  to  October  15,  1917,  the  United  States  Employ- 
ment Service  had  been  conducted  as  an  integral  part  of  the  Divi- 
sion of  Information  in  the  Bureau  of  Immigration,  as  explained 
in  the  preceding  pages.  Consequently  the  funds  for  operation 
of  the  service  came  out  of  the  appropriations  of  that  bureau,  and 
its  officers  in  the  field  acted  in  the  dual  capacity  of  immigration 
and  employment  officials.  The  exigencies  of  a  war  period,  how- 
ever, necessitated  the  establishment  of  public  employment  ex- 
changes as  a  distinct  and  separate  branch  of  the  Department  of 
Labor.  In  order  to  effect  this  and  some  other  changes  in  the 
Employment  Service,  Congress  was  asked  to  make  adequate  ap- 
propriation. Congress  responded  with  an  "Act  making  appro- 
priations to  supply  urgent  deficiencies  in  appropriations  for  the 
fiscal  year  ending  June  30,  1918,  and  prior  fiscal  years,  on  ac- 
count of  war  expenses,  and  for  other  purposes, ' '  approved  by  the 
President  on  October  6,  1917,  which  provided  for  an  appropria- 
tion of  $250,000  to  "enable  the  Secretary  of  Labor  during  the 
present  emergency,  in  addition  to  existing  facilities,  to  furnish 
such  information  and  to  render  such  assistance  in  the  employ- 

51  U.  S.  Employment  Service  BuMetin,  July  30,  1918,  p.  6. 


399]  COORDINATION   IN   LABOR   ADMINISTRATION  185 

ment  of  wage  earners  throughout  the  United  States  as  may  be 
deemed  necessary  in  the  prosecution  of  the  war. ' ' 52 

With  funds  available  the  work  of  reorganization  was  begun. 
Employment  matters  not  emergent  in  character  were  continued 
in  the  Division  of  Information  in  the  Bureau  of  Immigration, 
while  those  emergent  in  character  were  managed  directly  from 
the  office  of  the  Secretary  of  Labor  without  intervention  from 
the  Bureau  of  Immigration,  and  at  the  expense  of  the  recently 
granted  congressional  appropriation.  Emergency  matters  that 
came  to  the  attention  of  the  Division  of  Information  were  re- 
ported through  the  Commissioner  of  Immigration  to  the  As- 
sistant Secretary  of  Labor.  The  Boys '  Working  Reserve  and  the 
United  States  Public  Service  Reserve  were  transferred  to  the 
office  of  the  Secretary  of  Labor  to  be  supported  out  of  the  emer- 
gency appropriation.53  This  really  was  the  first -step  in  the  work 
for  the  reorganization  of  the  Employment  Service. 

The  task  of  the  Employment  Service  was  greater  than  had 
been  anticipated,  and  the  congressional  appropriation  proved  in- 
adequate to  sustain  the  service.  On  December  5,  1917,  President 
Wilson  rescued  the  service  from  the  alternative  of  restricting  its 
activities  in  a  critical  period  by  allotting  to  the  Department  of 
Labor  $825,000  from  the  appropriations  for  national  security 
and  defense,  and  thus  made  possible  the  continuation  of  the  work 
of  distributing  productive  labor  throughout  the  country. 

These  additional  funds  permitted  greater  expansion  of  the 
Employment  Service,  and  it  became  necessary  to  establish  con- 
centration of  control  and  coordination  of  activities.  With  this 
purpose  in  view,  the  Department  of  Labor  on  December  13, 
issued  a  departmental  order  providing  that  all  work  of  the  Divi- 
sion of  Information,  whether  emergent  or  otherwise,  should  be 
reported  thereafter  to  the  office  of  the  Secretary  of  Labor  and 
the  division  should  receive  its  instructions  in  the  future  from  the 
assistant  secretary.  On  January  3,  1918,  the  Secretary  of  Labor 
directed  that  the  Division  of  Information  should  thereafter  be 
an  integral  part  of  the  Employment  Service  and  should  be 
known  as  the  Division  of  Information,  Administration,  and 
Clearance.  On  July  1,  1918,  the  Division  of  Information  was 
again  restored  to  the  Bureau  of  Immigration. 

52  Sixth  Annual  'Report  of  the  Secretary  of  Labor,  1918,  p.  205. 

53  Ibid.,  pp.  205,  206. 


186 


DEVELOPMENT  OF  WAR  LABOR  LEGISLATION 


[400 


401]  COORDINATION   IN   LABOR   ADMINISTRATION  187 

Organization  and  Administration  of  the  Enlarged  Em- 
ployment Service.  The  creation  of  a  distinct  and  separate  em- 
ployment service  thus  took  place  on  January  3,  1918.  The  plan 
of  reorganization  set  forth  in  the  memorandum  of  that  date  pro- 
vided for  a  director,  an  assistant  director  for  field  work  and 
quasi-official  bodies,  and  an  assistant  director  for  administrative 
work.  The  service  was  placed  directly  under  control  and  super- 
vision of  the  office  of  the  Secretary  of  Labor.  State,  county,  and 
municipal  employment  offices  throughout  the  nation  were  co- 
ordinated under  the  authority  of  the  United  States  Employment 
Service.  This  does  not  mean,  however,  that  state  employment 
services  lost  their  identity  when  they  became  component  parts  of 
the  national  system.  What  actually  happened  was  that  these 
agencies  were  confederated  with  the  national  system,  which  en- 
hanced both  their  prestige  and  their  efficiency. 

The  Employment  Service  was  organized  with  a  director  gen- 
eral and  one  assistant  director,  who  with  the  chiefs  of  the  divi- 
sions constituted  a  policies  board.  This  board,  however,  was 
abandoned  shortly  after  it  was  organized.  Divisions  were  cre- 
ated to  take  charge  of  specific  duties  as  to  information,  adminis- 
tration and  clearance,  woman  labor,  reserves,  farm  labor,  etc. 
In  all,  seven  regular  divisions  were  provided  for,  namely: 
a  Woman's  Division,  a  Division  of  Information,  a  Division 
of  Service  Reserves  which  included  the  Public  Service  Re- 
serve and  the  Boys'  Working  Reserve,  a  Farm  Service  Divi- 
sion, a  Division  of  Investigation,  a  Statistical  Division,  and  a 
Division  of  Service  Offices.54  Under  the  direction  of  these  divi- 
sions the  service  reached  out  into  the  remotest  districts  of  the 
country  effecting  correlation  of  effort  between  local,  state,  and 
national  employment  agencies.  The  introduction  of  the  new 
system  was  endorsed  and  supported  by  the  Council  of  National 
Defense,  forty-eight  State  Councils  of  Defense,  four  thousand 
county  councils,  and  innumerable  community  councils,  which 
was  striking  evidence  of  the  need  for  such  a  system  of  labor  ex- 
changes and  of  its  possible  development.55 

Even  as  early  as  May,  1918,  the  problem  of  securing  an  ade- 
quate supply  of  skilled  and  unskilled  labor  for  war  industries 

54  Sixth  Annual  Report  of  the  Secretary  of  Labor,  1918,  pp.  206,  207. 
SB  U.  S.  Employment  Service  Bulletin,  July  30,  1918,  p.  3. 


188  DEVELOPMENT  OF  WAE  LABOR  LEGISLATION  [402 

had  become  acute,  and  two  special  sections  were  created  —  the 
Skilled  Labor  Section  and  the  Unskilled  Labor  Section.  Co- 
operation between  labor  organizations  and  the  Skilled  Labor 
Section  made  possible  the  transfer  of  a  large  number  of  workers 
from  nonessential  to  essential  war  work.  Moreover,  furlough 
from  army  duties  was  secured  for  many  skilled  workers  whose 
services  were  sorely  needed  in  emergency  employments.  Later, 
as  we  shall  see,  the  Unskilled  Labor  Section  became  the  exclusive 
agency  for  recruiting  all  unskilled  workers  for  war  industries, 
with  the  exception  of  labor  for  railroads,  farms,  and  enterprises 
employing  less  than  100  men.  Experience  soon  taught  those  in 
charge  of  the  recruitment  of  labor  that  additional  readjustments 
was  necessary  if  the  service  was  to  perform  its  duties  creditably. 

Toward  the  end  of  June,  1918,  plans  were  adopted  providing 
for  a  system  of  state  advisory  committees,  community  labor 
boards,  and  state  organization  committees,  consisting  of  repre- 
sentatives of  employers,  employees,  and  the  United  States  Em- 
ployment Service.  These  were  to  aid  in  recruiting  unskilled 
labor  for  war  industries  and  in  the  extension  of  the  activities  of 
the  Employment  Service  throughout  the  country. 

The  labor  mobilizing  and  distributing  machinery  of  the  reor- 
ganized Employment  Service  was  effected  on  July  19,  1918,  when 
two  men  representing  employers  and  employees  from  every  state 
east  of  the  Mississippi  met  in  Washington  to  hear  details  of  the 
labor  recruiting  plan.  The  state  divisions  of  the  Employment 
Service  sent  a  third  member  who  was  chairman  ex  officio  of  the 
state  representatives.  These  three  men  composed  what  was 
known  as  the  state  organization  committee  of  the  United  States 
Employment  Service.  A  similar  conference  west  of  the  Missis- 
sippi met  at  Denver  July  25,  1918.  In  eleven  and  five  days  re- 
spectively, preceding  August  1,  1918,  each  state  organization 
committee  established  a  state  advisory  board  composed  of  rep- 
resentatives of  employers,  employees,  and  the  Employment  Ser- 
vice. In  addition  to  the  state  advisory  boards  there  were  pro- 
vided for  local  community  boards  created  according  to  the  vol- 
ume of  war  production,  transportation  facilities,  and  other  eco- 
nomic conditions,  to  be  composed  of  representatives  of  local 
employers  and  employees.  Industrial  advisers  were  also  pro- 
vided for. 


403]  COORDINATION   IN   LABOR   ADMINISTRATION  189 

The  changes  introduced  as  a  result  of  the  conference  referred 
to  above  may  be  summarized  as  follows :  Abandonment  of  the 
system  of  thirteen  districts  originally  established  by  the  Em- 
ployment Service,  thereby  making  the  state  the  unit,  and  gradu- 
al elimination  of  the  district  superintendencies ;  the  centraliza- 
tion of  responsibility  for  field  organization  in  the  hands  of  the 
federal  directors  of  employment  for  the  states ;  the  introduction 
of  uniform  methods  of  office  operation ;  and  the  reorganization 
of  the  administrative  work  at  Washington  into  five  divisions  — 
control,  field  organization,  clearance,  personnel,  and  informa- 
tion —  each  in  charge  of  a  director. 

The  organization  and  functions  of  the  state  organization 
committees,  the  state  advisory  boards,  and  the  community 
labor  boards  are  worthy  of  note.  The  state  organization  com- 
mittee was  composed  of  representatives  of  the  employing  and 
the  laboring  interests  of  the  respective  states,  together  with  a 
representative  of  the  state  employment  service.  Its  duty  was 
to  assist  the  state  director  in  organizing  the  state  advisory 
board,  and  the  community  boards.  It  continued  in  existence 
only  until  these  boards  were  formed. 

The  state  advisory  board  in  each  state  consisted  of  the  fed- 
eral director  of  employment  as  chairman,  two  representatives  of 
labor,  two  of  management,  and  two  women,  one  of  the  latter  to 
represent  the  workers  and  the  other  to  represent  the  employers. 
The  chief  functions  of  these  boards  were :  ( 1 )  To  advise  the 
federal  director  of  employment  in  matters  of  policy  and  to  aid 
him  in  selecting  the  members  of  his  staff  and  the  officers  to  be 
placed  in  charge  of  the  main  local  offices,  including  the  superin- 
tendents of  women's  divisions;  (2)  to  recommend,  when  neces- 
sary and  expedient,  the  removal  of  these  officers;  and  (3)  re- 
vision and  approval  of  the  apportionment  among  communities  of 
their  respective  states  of  the  quota  assigned  thereto  for  purposes 
of  recruitment. 

The  community  labor  boards  comprised  five  members,  repre- 
senting the  United  States  Employment  Service,  local  employers, 
and  local  employees.  At  the  end  of  hostilities,  November  11,  1918, 
there  were  1,644  of  these  boards  in  operation.  Their  functions 
were:  (1)  Determination  of  all  questions  involving  the  recruit- 
ment and  distribution  of  labor  in  the  community,  subject  to  ap- 


190  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [404 

peal  by  any  member  to  the  state  advisory  board ;  all  decisions  of 
both  state  advisory  boards  and  community  labor  boards  being 
subject  to  regulations  issued  and  approved  by  the  War  Labor 
Board;  (2)  distribution  of  the  community's  quota  of  employees, 
assigning  to  industries  and  employers  in  non-war  work  the  pro- 
portionate share  which  each  should  contribute  to  the  army  of 
workers  needed  by  essential  industries;  (3)  consultation  of  the 
employers'  committee,  represented  in  the  community  labor 
board,  concerning  the  distribution  and  assignment  of  workers; 
(4)  enjoying  no  executive  powers,  and  depending  upon  the  good 
will  of  employers  and  employees  for  its  success,  each  community 
board  had  to  encourage  and  develop  the  spirit  of  cooperation 
among  these  interests.56 

The  industrial  advisers,  who  were  selected  by  the  Department 
of  Labor,  furnished  the  district  draft  boards  information  as  to 
the  need  for  skilled  labor  and  the  supply  of  such  labor  in  each 
community,  and  assisted  these  boards  in  arriving  at  their  deci- 
sions as  to  whether  or  not  individuals  were  performing  work 
necessary  to  the  effective  prosecution  of  the  war. 

Experience  taught  new  lessons  and  suggested  additional  im- 
provements for  the  Employment  Service.  Almost  every  phase 
of  governmental  regulation  during  the  war  period  was  char- 
acterized sooner  or  later  by  centralization  of  control  and  co- 
ordination in  administration.  The  recruitment  and  placement 
of  unskilled  labor  became  an  increasingly  difficult  problem  as 
the  war  continued,  and  it  was  obvious  to  those  most  intimately 
acquainted  with  the  Employment  Service  that  centralization  and 
coordination  must  be  introduced  into  the  control  and  adminis- 
tration of  the  work  of  recruiting  and  distributing  labor.  The 
War  Labor  Policies  Board  recommended  that  exclusive  authority 
for  the  recruiting  and  placing  of  unskilled  labor  be  vested  in  the 
United  States  Employment  Service,  in  order  to  eliminate  appar- 
ent duplication  of  effort  and  labor  stealing.  This  recommendation 
was  submitted  to  President  Wilson  by  the  Secretary  of  Labor 
on  June  15,  1918.  On  June  17,  1918,  the  President  issued  a 
proclamation  urging  all  employers  engaged  in  war  work  to  re- 
frain, after  August  1,  1918,  from  recruiting  unskilled  labor  in 
any  manner  whatsoever,  except  through  the  United  States  Em- 

56  Seventh  Annual  Report  of  the  Secretary  of  Labor,  1919,  pp.  266,  267. 


405]  COORDINATION   IN   LABOR  ADMINISTRATION  191 

ployment  Service,  and  urging  all  workers  to  respond  patriot- 
ically to  calls  for  labor  issued  by  the  service  in  behalf  of  essential 
war  industries.  The  regulations  concerning  this  new  develop- 
ment were  sent  out  on  August  1,  and  are  so  comprehensive  and 
important  that  we  quote  them  in  full: 


I.    BY  EMPLOYERS  IN  WAR  WORK 

To  minimize  the  danger  of  interruption  to  war  work  in  effecting  the 
change  from  present  competitive  methods  of  labor  recruiting,  the  govern- 
ment central  labor  recruiting  program,  as  heretofore  announced,  provides 
that  at  the  outset  employers  may  continue  to  hire  unskilled  laborers  who 
apply  for  work  without  solicitation  and  that  private  field  forces  may  be 
utilized  under  control  of  the  United  States  Employment  Service. 

In  order  that  the  United  States  Employment  Service  may  be  as  effective 
as  possible  it  is  highly  important  that  all  employers  engaged  in  war  work 
keep  the  local  office  of  the  United  States  Employment  Service  informed 
from  day  to  day  of  their  exact  needs  for  unskilled  labor. 

The  regulations  which  govern  private  recruiting  are  as  follows: 

'Recruiting  regulations 

1.  Employers  may  continue  to  hire  workers  who  apply  at  the  plant  with- 
out solicitation,  direct  or  indirect. 

2.  The  Federal  director  of  employment  in  each  State  is  authorized  to 
grant  permission  to  employers  to  use  their  own  field  agents  for  recruiting 
unskilled  workers  under  his  direction  and  control  for  war  industries  located 
within  the  State. 

3.  Permission  to  recruit  unskilled  laborers  in  States  other  than  the  one 
in  which  the  work  is  located  may  be  secured  from  the  Director  General  of 
the   United   States   Employment   Service   upon  the   recommendation   of  the 
Federal  director  of  employment  for  the  State  in  which  the  men  are  needed. 
Such  permission  will  be  communicated  by  the  Director  General  to  the  Fed- 
eral directors  for  the  States  in  which  the  labor  is  needed  and  from  which 
it  is  to  be  recruited. 

Transportation  of  workers 

4.  No  unskilled  labor  may  be  transported  from  one  State  to  another 
without  authorization  from  the  Director  General,  to  be  secured  by  applica- 
tion through  the  Federal  director  of  employment  for  the  State  in  which  the 
labor  is  recruited.     No  laborers  may  be  removed  from  one  employment  dis- 
trict  to   another   within   a   State   without   authorization   from   the   Federal 
director  of  employment  for  the  State. 

5.  Employers   who   receive   permission   to   transport   workers   from   one 
State  to  another  or  from  one  district  to  another  within  any  State  must  file 
a  statement  with  the  nearest  Employment  Service  office  of  the  number  of 
men  transferred,  the  wages  offered,  and  other  terms  and  conditions  of  em- 
ployment promised  to  the  men. 


192  DEVELOPMENT  OP  WAR  LABOR  LEGISLATION  [406 

No  fee  agencies  or  advertising 

6.  Employers  who  are  permitted  to  use  their  own  field  agents  for  re- 
cruiting labor  must  in  no  case  use  any  fee-charging  agency  or  use  any 
agents  or  labor  scouts  who  are  paid  for  their  work  on  a  commission  basis. 

7.  All  advertising  for  unskilled  labor,  whether  by  card,  poster,   news- 
paper, handbill,  or  any  other  medium,  is  prohibited  after  August  1,  1918. 
This  applies  to  all  employers  engaged  wholly  or  partly  in  war  work  whose 
maximum  force,  including  skilled  and  unskilled  laborers,  exceeds  100. 

Eecruiting  skilled  labor 

No  restrictions  are  for  the  time  being  placed  upon  employers  engaged  in 
war  work  in  recruiting  their  own  skilled  labor,  other  than  that  they  should 
so  conduct  their  efforts  as  to  avoid  taking  or  causing  restlessness  among 
men  who  are  already  engaged  in  other  war  work,  including  railroads,  mines, 
and  farms,  as  well  as  work  covered  by  direct  and  subcontracts  for  depart- 
ments of  the  United  States  Government. 

Federal  directors  of  the  United  States  Employment  Service  for  the  sev- 
eral States  are  instructed  to  give  every  possible  assistance  to  employers  en- 
gaged in  war  work  who  desire  to  recruit  skilled  labor. 

Employers  in  war  work  are  at  present  under  no  restrictions  as  to  adver- 
tising for  skilled  labor,  other  than  that  all  advertising  should  be  designed 
and  conducted  so  as  to  avoid  creating  restlessness  among  men  in  war  work 
(as  above  described). 

II.    EMPLOYERS  ix  NON-WAR  WORK 

Non-war  industries  should  not  offer  superior  inducements  or  in  any  other 
way  undertake  to  compete  for  labor  with  the  Government  or  with  employers 
engaged  in  war  work  (as  above  described).  Observance  of  the  letter  and 
spirit  of  this  provision  is  necessary  for  the  efficient  prosecution  of  the  war. 
Methods  of  recruiting  and  of  advertising  which  do  not  offend  against  it  are 
permitted.57 

United  States  Employment  Service, 

J.  B.  DENSMORE,  Director  General. 
August  1,  1918. 

Centralized  labor  recruiting  which  was  inaugurated  under 
these  regulations  materially  reduced  labor  turnover,  established 
priorities  of  labor  distribution,  and  transferred  unskilled  work- 
ers from  non-war  industries  to  war-emergency  work.  Employ- 
ers, labor  union  officials,  and  workers  alike  supported  the  entire 
program. 

Thus  in  less  than  three  weeks  from  the  date  of  reorganization 
the  reconstructed  employment  system  was  ready  to  function  as 
the  only  agency  for  the  recruiting  and  distribution  of  unskilled 
labor  for  war  industries,  since  it  was  early  in  July  that  the  War 

ST  Seventh  Annual  Eeport  of  the  Secretary  of  Labor,  1919,  pp.  267-269. 


407]  COORDINATION   IN   LABOR   ADMINISTRATION  193 

Labor  Policies  Board  decided  to  establish  state  organization 
committees.  To  announce  this  labor  recruiting  campaign  35,000 
four-minute  men,  movies,  papers,  and  other  agencies  were  used 
by  the  service. r>s  In  a  short  time  branch  offices  had  been  estab- 
lished in  500  localities  with  a  total  personnel  of  about  3,000  paid 
employees.  The  foundation  for  the  success  of  the  reorganized 
employment  program  of  the  government  had  been  laid  on  April 
30,  1918,  when  the  United  States  was  divided  into  thirteen  em- 
ployment districts,  each  under  the  direction  of  a  district  em- 
ployment superintendent.  Each  district  superintendent's  office 
received  reports  from  all  public  employment  offices  within  the 
district,  kept  in  close  touch  with  the  employment  situation, 
supervised  the  work  of  state  directors  of  employment  in  the 
states  comprising  the  district,  and  managed  the  fiscal  operations 
of  the  service.  Thus  a  broad  system  of  labor  clearances  was 
established,  making  possible  clearance  of  labor  between  local 
offices  within  the  state  through  the  medium  of  the  state  office 
and  between  the  states  within  each  district  through  the  district 
office,  while  clearances  between  districts  were  provided  for 
through  the  main  office  at  Washington.59  The  experiences  ob- 
tained under  this  arrangement  proved  an  invaluable  asset  and 
contributed  much  to  the  ease  with  which  the  readjustments  in 
the  service  were  made,  and  to  the  subsequent  success  of  the  re- 
organized service. 

Activities  of  the  Divisions 

With  this  general  survey  of  the  development,  structure,  and 
operation  of  the  United  States  Employment  Service,  we  are  in 
a  position  to  appreciate  more  fully  the  achievements  of  the  sev- 
eral divisions  that  contributed  to  the  success  of  the  general  ser- 
vice. 

The  rapidity  with  which  readjustments  were  made  in  the  Em- 
ployment Service  to  meet  new  problems  and  an  ever  increasing 
demand  for  its  assistance  was  due  largely  to  the  efficient  admin- 
istrative machinery  of  the  service.  The  administrative  structure 
of  the  Employment  Service,  including  the  divisions,  was  deter- 
mined by  the  memorandum  of  the  Secretary  of  Labor  issued  on 

ss  U.  S.  Employment  Service  Bulletin,  July  30,  1918,  pp.  3,  4. 
so  Monthly  Labor  Review,   U.    S.   Bureau   of   Labor   Statistics,   August, 
1918,  p.  64. 


194  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [408 

February  22,  1918,  and  effective  on  March  1,  1918,  which  modi- 
fied the  departmental  order  of  January  3,  1918,  to  which  refer- 
ence has  been  made  in  previous  pages.  The  new  memorandum 
contained  the  following  provisions: 

1.  The  Employment  Service  shall  be  administered  by  the  Department. 

2.  There  shall  be  a  director,  who  shall  have  general  supervision  of  all 
activities  of  the  Employment  Service. 

3.  There  shall  be  an  assistant  director,  who  shall  perform  such  duties 
as  may  be  assigned  to  him  by  the  director  and  shall  act  as  director  in  the 
absence  of  his  chief. 

4.  There  shall  be  a  Policies  and  Planning  Board  composed  of  chiefs  of 
the  different  divisions,  with  a  permanent  secretary  assigned  to  it. 

5.  The  Division  of  Information  shall  be  known  as  the  Division  of  In- 
formation, Administration,  and  Clearance,  which  shall  have  charge  of  the 
ordinary  administrative  questions  arising  within  the  service,  including  files, 
correspondence,  accounts,  statistics,  and  other  matters  normally  cared  for 
by  administrative   divisions,  and   shall  continue   to   conduct   clearing-house 
operations  connected  with  employment-exchange  work.     It  shall  also  have 
under  its  supervision  field  work,  quasi-official  bodies,  and  service  offices. 

6.  The  other  divisions  will  remain  as  at  present,  except  the  Division  of 
Investigation,  which  shall  be  abandoned.60 

(1)  The  Public  Service  Reserve.  The  United  States  Public 
Service  Reserve  has  been  called  the  recruiting  arm  of  the  Em- 
ployment Service.  It  was  in  charge  of  a  national  director,  and 
in  each  state  there  was  a  federal  director  of  the  reserve,  who  in 
most  cases  was  the  same  person  who  held  the  position  of  federal 
director  of  the  Employment  Service.  The  reserve  supplemented 
the  employment  offices  with  15,000  enrollment  agents,  who 
reached  * '  down  into  the  smallest  village  and  hamlet  to  tap  poten- 
tial supplies  of  wage  earners. ' '  These  agents  assisted  greatly  in 
the  recruitment  and  the  distribution  of  labor  for  the  more  essen- 
tial supplies  of  wage  earners. ' '  These  agents  assisted  greatly  in 
to  fill  special  positions  for  whose  services  a  heavy  demand  was  im- 
minent. 

When  the  reserve  was  first  organized  by  the  Secretary  of 
Labor  on  June  14,  1917,  its  activities  were  confined  to  the  index- 
ing and  classifying  of  applicants  at  Washington  for  govern- 
mental service.  In  this  way  numerous  governmental  depart- 
ments were  furnished  with  thousands  of  men,  chiefly  of  the 

eo  Sixth  Annual  Report  of  the  Secretary  of  Labor,  1918,  p.  208.  The 
accompanying  diagram  of  the  organization  of  the  service  is  from  the  Sev- 
enth Annual  Report  of  the  Secretary  of  Labor,  1919,  p.  279. 


409]  COORDINATION   IN   LABOR   ADMINISTRATION  195 

highly  skilled  types,  such  as  engineers,  technical  experts,  and 
skilled  mechanics.  Even  heads  of  governmental  departments 
organized  for  war-emergency  work  were  selected  from  lists  fur- 
nished by  the  reserve.  Among  the  achievements  of  the  Public 
Service  Reserve  the  following  are  most  noteworthy:  over  1,500 
aviation  motor  mechanics  enlisted  within  three  weeks,  in  Janu- 
ary and  February,  1918,  for  service  overseas ;  over  4,500  railway 
men  listed  for  induction  and  enlistment  into  the  Division  of 
Military  Railways;  470  for  the  Tank  Corps;  472  as  towermen 
for  the  Navy ;  all  kinds  of  civilian  help  for  the  Ordnance  Depart- 
ment. Up  to  June,  1918,  the  reserve  had  registered  and  indexed 
more  than  300,000  men  of  various  skilled  and  unskilled  trades. 
In  appraising  the  work  of  the  Public  Service  Reserve  the  Secre- 
tary of  Labor  stated:  "Undoubtedly  production  has  been 
appreciably  increased  and  efficiency  improved  by  its  ability  to 
furnish  on  short  notice  men  of  almost  any  qualifications. ' ' 61 

(2)  The  Boys'  Working  Reserve.  As  a  branch  of  the  Em- 
ployment Service  the  United  States  Boys'  Working  Reserve  had 
charge  of  the  mobilization  and  placement  of  boys  between  the 
ages  of  16  and  21  in  civilian  war  work.  From  the  date  of  its 
organization,  April,  1917,  the  boys'  reserve  fulfilled  a  useful 
function  in  recruiting  juvenile  workers  to  maintain  food  produc- 
tion, which  threatened  to  break  down  on  account  of  the  with- 
drawal of  3,000,000  to  4,000,000  adults  from  productive  enter- 
prises. Besides  conserving  the  labor  of  farm  boys  for  the  farm, 
the  reserve  during  1918  enrolled  approximately  250,000  boys  of 
high-school  age,  chiefly  for  agricultural  work  under  direction  of 
the  agricultural  division  of  the  reserve.  An  illustration  of  the 
achievements  of  the  boys'  reserve  is  found  in  the  fact  that  in 
Illinois  21,000  boys  worked  on  the  farms ;  in  Connecticut,  10,000 
boys  helped  to  care  for  the  largest  crops  in  the  history  of  the 
state ;  in  New  York,  12,000  boys  rendered  invaluable  service  on 
farms;  in  Indiana,  15,000  boys  helped  to  cultivate  the  soil  and 
harvest  the  crops.62  In  Michigan,  Georgia,  Oregon,  California, 
and  other  states  special  crops  which  were  jeopardized  because  of 
lack  of  labor  were  rescued  by  lads  who  enlisted  in  the  boys'  re- 

*\Sixtli  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  210. 
.,  p.  211. 


196  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [410 

serve,  and  the  country  was  thus  assured  of  its  supply  of  apples, 
beets,  berries,  cherries,  apricots,  plums,  and  grapes.63 

Voluntary  enlistment,  physical  examination,  and  prelim- 
inary instruction  were  among  the  features  of  the  reserve 's  activ- 
ities in  the  several  states.  Central  training  camps  were  financed 
by  state  councils  of  defense  or  private  subscription,  while  the 
boys '  transportation  expenses  to  and  from  the  camps  were  usual- 
ly paid  by  local  communities  from  which  the  boys  were  taken. 
The  pay  received  by  the  boys  varied  from  $1.00  to  $2.00  a  day, 
and  it  is  officially  stated  that  the  records  from  employers  them- 
selves show  that  over  95  per  cent  of  the  boys  placed  on  farms 
were  satisfactory  workers.64  In  all  this  work  the  Y.  M.  C.  A. 
and  other  constructive  agencies  aided  materially. 

By  March,  1919,  the  boys'  reserve  had  completed  its  organiza- 
tion with  a  federal  state  director  in  every  state,  the  District  of 
Columbia,  and  the  territory  of  Hawaii ;  had  enrolled  and  placed 
300,000;  given  intensive  training  in  farm  practices  and  farm 
mechanics  to  more  than  50,000  city  high  school  boys ;  promoted 
many  successful  training  camps  for  boys ;  supervised  the  leisure 
and  recreational  hours  of  these  young  workers ;  safeguarded  the 
interests  of  the  boys  during  hours  of  employment ;  and  encour- 
aged a  large  number  of  the  recruits  to  return  to  complete  their 
school  work,  after  they  had  served  their  country  on  the  farms. 

The  economic  value  of  the  services  which  these  lads  rendered 
to  the  nation  in  a  great  crisis  is  seen  by  the  estimate,  which  is 
declared  to  be  conservative,  that  they  added  a  hundred  million 
dollars'  worth  of  food  to  the  world's  supply.  The  economic 
value  to  the  boys  themselves  was  significant.  One-fourth  of  the 
boys  in  Indiana  earned  a  total  of  $1,111,722.  They  worked  an 
average  of  114  days  each  at  an  average  wage  of  $1.51  a  day,  ex- 
clusive of  board.  In  Colorado,  3,500  boys  earned  $609,823.  In 
Massachusetts,  2,500  boys  added  nearly  $2,000,000  to  the  food 
supply  in  1918,  and  the  earnings  of  600  of  these  boys  gave  an 
average  of  $166.66.  In  Oregon,  1,950  boys  earned  $253,778. 
New  York  City  boys  of  whom  records  were  kept  earned  $368,- 
938.76  net.  Over  3,000  reserve  boys  in  Texas  averaged  a  little 
over  90  days'  work  each,  and  earned  an  average  of  $1.10  a  day 

63  Seventh  Annual  Report  of  the  Secretary  of  Labor,  1919,  pp.  372,  373. 
e*  Sixth  Annual  Report  of  the  Secretary  of  Labor,  1918,  p.  211. 


411]  COORDINATION   IN   LABOR   ADMINISTRATION  197 

net.  In  Oklahoma  a  record  of  860  boys  showed  that  in  79,537 
days'  work  they  earned  $111,198.38,  exclusive  of  board  —  about 
$1.40  a  day  net.  Of  145  reserve  boys  in  a  South  Dakota  high 
school,  117  reported  bank  accounts  with  a  saving  of  $10,040  for 
the  season  of  1918.  Actual  records  were  used  as  the  basis  of 
these  statistics.65 

The  ideals  and  purposes  of  the  United  States  Boys'  Working 
Reserve  have  been  expressed  by  Secretary  of  Labor  Wilson  in  the 
following  words: 

Reserve  officials  feel  that  the  record  of  the  year's  activities  can  not  be 
accurately  expressed  alone  in  terms  of  food  production,  school  extension,  or 
industrial  control.  The  effect  of  the  public  policies  of  the  organization 
upon  the  spirit,  ideals,  and  social  attitudes  of  the  boys  as  citizens  of  a 
great  Republic  at  war  is  known  to  be  profound,  but  can  not  yet  be  set 
forth  in  concrete  terms.  The  movement  has  been  and  will  be  guided  by 
the  principles  that  in  dealing  with  adolescence  the  latent  boy  power  of  the 
Nation  can  not  and  shall  not  be  manipulated  merely  as  a  productive 
mechanism.66 

(3)  The  Farm  Service  Division,  In  the  work  of  recruiting 
and  placing  agricultural  labor  the  Employment  Service  func- 
tioned through  the  Farm  Service  Division,  created  December  13, 
1917.  To  supervise  this  work  a  special  assistant  to  the  director 
general  was  appointed.  Temporary  offices  were  established 
throughout  the  country,  especially  in  the  states  of  Oklahoma, 
Nebraska,  Missouri,  Iowa,  Minnesota,  and  the  Dakotas,  and  a 
volunteer  representative  was  selected  in  each  county  in  these 
states  to  make  crop  reports  and  collect  information  regarding 
the  need  for  farm  labor.  Working  from  the  employment  office 
at  Kansas  City  as  a  center,  excellent  service  was  accomplished 
through  these  volunteer  field  agents.  "As  an  evidence  of  the 
efficient  manner  in  which  this  work  was  carried  on,  it  may  be 
stated  that  many  letters  have  been  received  from  chambers  of 
commerce  and  individuals  in  the  territory  concerned,  conveying 
the  information  that  not  a  bushel  of  wheat  has  been  lost  through 
lack  of  sufficient  help. ' ' 67  Between  July  1,  1918,  and  April, 
1919,  the  Farm  Service  Division  placed  221,096  persons  out  of 
393,933  called  for.  These  figures  do  not  include  the  thousands 

es  Seventh  Annual  Report  of  the  Secretary  of  Labor,  1919,  pp.  285,  286. 
66  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  213. 


198  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [412 

of  harvest  hands  recruited  through  the  Kansas  City  office.    The 
division  was  discontinued  in  April,  1919. 68 

(4)  The  Women's  Division.  The  Women's  Division  of  the 
Employment  Service  performed  the  important  task  of  enlisting 
and  placing  women  in  essential  occupations  and  emergency  work. 
Recruiting  was  engaged  in  only  when  there  were  special  calls 
for  female  help,  or  when  women  with  special  qualifications  ap- 
plied for  positions.  Subdivisions  of  the  Women's  Division  were 
established  in  various  localities  throughout  the  nation,  and  these 
increased  in  number  from  9  on  January  1,  1918,  to  55  on  July 
1,  1918,  and  soon  to  57  separate  divisions.  These  divisions  were 
established  by  the  creation  of  new  offices  or  absorption  of  state, 
municipal,  or  other  public  employment  offices.  Data  for  the  last 
six  months  of  the  fiscal  year  ending  June  30,  1918,  indicate  the 
excellent  work  that  was  being  done  by  this  division  through  its 
local  agencies : 

No.  of  per- 

Month  sons  placed 

January    9,667 

February 7,074 

March   7,758 

April   17,442 

May    22,344 

June  19,127 


Total    83,412 

While  these  placements  for  the  most  part  consisted  of  women 
for  industrial  and  domestic  work,  many  women  were  placed  in 
high-grade  clerical  and  secretarial  positions.  On  April  1,  1918, 
the  Employment  Service  incorporated  into  the  Women's  Divi- 
sion the  Women's  Collegiate  Section,  which  took  charge  of  calls 
for  women  with  special  qualifications.69 

The  centralized  policy  and  decentralized  operation  principle 
which  led  to  the  establishment  of  the  War  Labor  Policies  Board 
and  the  Woman  in  Industry  Service  in  May  and  June,  1918, 
respectively,  resulted  in  the  abandonment  of  the  Women's  Divi- 
sion. The  purpose  of  this  change  was  to  enable  the  states  and 
localities  to  handle  their  own  problems  of  recruiting  and  placing 
women  in  industry  in  the  way  that  seemed  best  to  those  who 

68  Seventh  Annual  "Report  of  the  Secretary  of  Labor,  1919,  p.  289. 

69  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  pp  214,  215. 


413]  COORDINATION   IN   LABOR   ADMINISTRATION  199 

were  in  immediate  contact  with  conditions.  A  woman  assistant 
to  the  director  general  of  the  employment  service  was  appointed 
to  take  charge  of  all  matters  concerning  the  employment  of 
women,  and  in  the  administrative  offices  at  "Washington  sections 
were  created  to  supervise  the  work  connected  with  the  employ- 
ment of  women  farm  laborers,  professional  women,  juvenile 
workers,  reference  information,  publicity,  interstate  clearance, 
and  the  like.  Moreover,  a  large  number  of  the  general  offices  of 
the  Employment  Service  were  handling  both  male  and  female 
labor  in  small  cities.  On  November  11  women's  divisions  were 
operating  as  separate  agencies  in  40  states,  with  a  variation  in 
number  from  one  in  Arizona  and  Vermont  to  20  in  Illinois  and 
46  in  New  York.  Women  workers  were  represented  on  more 
than  500  community  labor  boards,  and  nearly  368,000  women 
were  reported  placed  by  the  United  States  Employment  Service 
during  the  ten  war  months  of  the  year  1918.  This  number  was 
equal  to  approximately  13  per  cent  of  all  placements  made  dur- 
ing that  period.  During  the  fiscal  year  ending  June  30,  1919, 
about  739,013  women  workers  were  reported  placed.70 

(5)  The  Negro  Division.     The  Negro  Division  was  created 
by  an  amendment  to  the  organization  of  the  United  States  Em- 
ployment Service,  as  provided  for  in  a  memorandum  of  the  Sec- 
retary of  Labor  dated  February  22,  1918.    The  purpose  of  this 
division  was  the  more  complete  and  efficient  utilization  of  col- 
ored workers.     This  work  was  in  charge  of  a  chief  of  division, 
acting  in  conjunction  with  and  partly  under  the  supervision 
of  the  director  of  Negro  economics.71 

(6)  Special  Services.    The  problem  of  proper  employment  of 
longshoremen   made   imperative   some   kind   of   machinery   for 
eliminating  the  inefficient  and  wasteful  use  of  that  type  of  labor. 
Conferences  were  held  in  New  York,  at  which  representatives 
of  the  Department  of  Labor,  the  longshoremen,  the  Army,  the 
Navy,  the  Shipping  Board,  the  Railroad  Administration,  and  the 
ship  owners,  agreed  that  an  elastic  pool  of  dock  labor  should  be 
provided.     Consequently  the  Stevedores  and  Marine  Workers' 
Division  was  organized  and  supervised  by  the  United  States 

70  Seventh  Annual  He-port  of  the  Secretary  of  Labor,  1919,  pp.  271,  272, 
287. 

71  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  215. 


200  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [414 

Employment  Service.  Distribution  of  labor  so  as  to  promote  the 
greatest  efficiency  was  the  primary  purpose  of  the  new  division. 
In  New  York  seven  branches  of  the  division  were  established, 
while  other  branches  were  located  at  Philadelphia,  Baltimore, 
Norfolk,  Newport  News,  Charleston,  S.  C.,  Mobile,  New  Orleans, 
Galveston,  Boston,  Portland,  Buffalo,  Seattle,  and  Duluth.  The 
success  of  this  service  is  evidenced  by  the  fact  that  the  port  of 
New  York  increased  its  efficiency  at  least  30  per  cent.72 

Another  special  problem  which  called  for  particular  attention 
was  the  shipyard  labor  for  Puget  Sound  yards.  In  January, 
1918,  the  Employment  Service  and  the  Emergency  Fleet  Cor- 
poration established  a  central  office  for  the  distribution  and  re- 
cruitment of  labor  for  these  shipyards. 

(7)  Mining  Division.     The  recruitment  and  placement  of 
mine  labor  was  assigned  to  the  Mining  Division  of  the  United 
States  Employment  Service.    The  executive  officers  of  this  divi- 
sion were  selected  from  representatives  of  mine  operators  and 
mine  workers  who  were  thoroughly  acquainted  with  the  mining 
industry  and  its  labor  problems.    A  shortage  of  mine  workers 
arose  on  account  of  the  abnormal  demand  for  coal  and  metals 
and  the  drafting  of  large  numbers  of  mine  workers  for  military 
service.     Through  the  cooperation  of  the  officers  of  the  United 
Mine  Workers  of  America  the  division  secured  the  names  of 
15,000  practical  miners,  engaged  in  non-war  work,  who  were 
available  for  transfer  to  essential  or  war-emergency  duties.    The 
majority  of  these  men  were  induced  to  give  up  more  lucrative 
and  remunerative  positions  to  enter  the  mines  in  patriotic  ser- 
vice to  their  country.73 

(8)  War  Placements  of  the  Employment  Service.    Some  idea 
of  the  magnitude  of  the  task  which  the  Employment  Service  had 
to  perform  may  be  gathered  from  the  statistical  data  that  is 
available  concerning  its  activities.     Reports  were  not  always 
obtainable,  so  statistics  do  not  give  a  complete  story  of  the 
achievements  of  the  service.     Nor,  indeed,  can  its  accomplish- 
ments be  measured  in  terms  of  placements.     Its  influence  upon 
the  production  of  food  and  materials,  and  in  building  up  the 
morale  of  our  adult  and  juvenile  working  force  can  not  be  esti- 

75  Seventh  Annual  Report  of  the  Secretary  of  Labor,  1919,  p.  276. 
73  Ibid.,  274. 


415] 


COORDINATION   IN   LABOR  ADMINISTRATION 


201 


mated.  During  the  eleven  months  of  its  wartime  operation  on 
a  reorganized  plan  —  January,  1918,  to  November,  1918  —  the 
United  States  Employment  Service  took  care  of  the  following 
registrations,  applications,  references,  and  placements: 

TABLE  X.     SHOWING  THE  NUMBER  OP  REGISTRATIONS,  APPLICATIONS,  REF- 
ERENCES, AND  PLACEMENTS  MADE  BY  THE  UNITED  STATES  EMPLOY- 
MENT SERVICE  DURING  THE  PERIOD  JANUARY  TO 
NOVEMBER,  1919,  INCLUSIVE  ™ 


Month 
January   

Registra- 
trations 
82,353 

Help 
Wanted 

80,002 

Referred 
62,642 

Reported 
Placed 
51,183 

February   

92,452 

92,594 

70,369 

58,844 

March  

144,156 

177,831 

118,079 

100,446 

April  

195,578 

320,328 

171,306 

149,415 

May  .. 

206,181 

328,587 

179,821 

156,284 

June  

246,664 

394,395 

221,946 

192,798 

July    

282,294 

484,033 

250,152 

217,291 

August  

555,505 

1,227,705 

500,510 

395,530 

September   

531,226 

1,476,282 

513,662 

362,696 

October    

594,737 

1,588,975 

606,672 

455,931 

November  

,  744,712 

1,724,943 

748,934 

558,469 

Total 3,675,858         7,895,675         3,444,093         2,698,887 

It  will  be  seen  from  the  above  table  that  the  calls  for  help  that 
came  to  the  Employment  Service  exceeded  the  number  of  persons 
registered  with  the  service,  the  number  of  persons  listed  being 
only  about  half  as  large  as  the  number  called  for  by  employers. 
Of  the  3,444,093  persons  whom  the  service  referred  to  employ- 
ment 2,698,887  or  about  78  per  cent  were  reported  to  have 
been  placed.  There  is  every  reason  to  believe  that  if  statistics 
had  been  carefully  and  accurately  kept  in  each  case  taken  care 
of  by  the  service  the  record  of  placements  would  be  much  more 
gratifying  than  the  excellent  achievements  already  cited. 

(9)  Summary  of  the  Post-war  Activities  of  the  Employment 
Service.  The  Employment  Service  did  not  have  the  opportunity 
to  slow  up  its  wartime  activities  when  the  armistice  was  signed 
on  November  11,  1918.  The  demobilization  of  the  army  and 
navy  entailed  the  serious  problem  of  placement  of  labor.  Of 
necessity  the  termination  of  hostilities  resulted  in  the  discon- 
tinuance of  some  of  the  war  branches  of  the  service  and  the 

74  Ibid.,  p.  275. 


202  DEVELOPMENT  OP  WAR  LABOR  LEGISLATION  [416 

cancellation  of  regulations  governing  centralized  recruiting. 
Moreover,  control  over  the  recruitment  and  distribution  of  un- 
skilled labor  was  withdrawn.  The  wartime  problem  was  re- 
versed. Whereas  the  service  had  been  burdened  with  the  task 
of  finding  men  for  jobs,  the  end  of  hostilities  brought  to  it  the 
task  of  finding  jobs  for  men.  The  abandonment  of  huge  war 
contracts  forced  the  release  of  thousands  of  wage  earners  within 
a  short  time,  and  as  soon  as  a  mass  of  returned  and  demobilized 
soldiers  and  sailors  added  to  this  number  the  problem  became 
extremely  difficult. 

Cancelation  of  war  contracts  was  bound  to  react  unfavorably 
on  the  labor  situation.  To  avoid  disastrous  results  from  this 
source  the  War  Industries  Board  cooperated  with  the  Depart- 
ment of  Labor.  On  November  20,  1918,  instructions  were  sent 
out  to  all  federal  directors  of  the  Employment  Service  under  the 
provisions  of  which  a  survey  in  122  cities  was  made,  and  weekly 
reports  of  labor  conditions  in  those  industrial  centers  were  sent 
to  the  War  Industries  Board.  Information  secured  in  this  way 
furnished  the  basis  for  cancelation  of  war  contracts  by  the 
board,  acting  as  the  agent  of  the  government.75  Needless  to 
say,  these  steps  had  much  to  do  with  the  prevention  of  serious 
unemployment  and  its  attendant  problems  which  abrupt  can- 
celation of  war  contracts  would  have  precipitated. 

The  demobilization  of  the  military  and  naval  forces  contained 
even  more  possibility  of  serious  effects  upon  the  labor  market 

than  could  have  resulted  from  the  sudden  cancelation  of  war 

i 

contracts,  since  demobilized  soldiers  and  sailors  could  not  so 
easily  locate  the  opportunities  for  employment.  As  a  precau- 
tionary measure  the  Employment  Service  called  a  conference  of 
the  representatives  of  national  welfare  organizations  and  gov- 
ernment bodies  concerned  with  demobilization  to  meet  in  Wash- 
ington on  December  2,  1918,  for  the  purpose  of  outlining  a  pro- 
gram for  assisting  soldiers,  sailors,  and  war  workers  in  finding 
employment.  A  plan  was  adopted  whereby  a  central  board  was 
formed  at  Washington,  with  a  representative  of  the  Department 
of  Labor  as  chairman,  consisting  of  numerous  governmental  and 
welfare  organizations.  Immediate  steps  were  taken  to  establish 
throughout  the  country  bureaus  for  returning  soldiers  and 

75  Seventh  Annual  Report  of  the  Secretary  of  Labor,  1919,  p.  276. 


417]  COORDINATION   IN   LABOR   ADMINISTRATION  203 

sailors.  More  than  2,000  of  these  bureaus  were  organized.  In 
addition,  the  Employment  Service  placed  its  representatives  at 
demobilization  camps  and  supplied  information  concerning  em- 
ployment in  this  country  to  service  men  at  the  embarkation 
camps  and  on  board  transports. 

Soon  the  Employment  Service  established  the  following  sec- 
tions :  The  Junior  Section,  for  the  purpose  of  giving  vocational 
guidance  to  boys  and  girls  between  the  ages  of  16  and  21;  the 
Handicap  Section,  which  dealt  with  the  placement  of  persons 
handicapped  by  age  or  some  other  physical  disability;  the  Pro- 
fessional and  Special  Section,  which  had  as  its  function  the 
placement  of  highly  trained  persons,  such  as  the  engineer,  the 
executive,  or  the  teacher.76 

In  August,  1918,  it  was  estimated  that  for  the  fiscal  year  end- 
ing June  30,  1919,  about  $14,801,382  would  be  required  to  carry 
on  the  work  of  the  Employment  Service.  This  estimate  was 
based  upon  the  assumption  that  the  war  would  continue  for  the 
period  of  another  year  at  least,  and  that  about  1,000  branch 
offices  and  a  personnel  of  6,000  employees  would  be  necessary. 
Only  about  $4,634,325.92  was  asked  for  finally.  Post-war  activ- 
ities resulted  in  the  expenditure  of  an  amount  exceeding  the 
appropriation  of  $5,500,000  which  had  been  made  for  the  cur- 
rent year's  work.  Consequently,  a  deficiency  appropriation  was 
asked  and  was  included  in  the  ''Third  Deficiency  Appropria- 
tion Act,  1919,"  which  was  voted  on  favorably  by  the  House 
of  Representatives  on  February  22,  1919.  This  carried  an  item 
of  $1,800,000  for  the  Employment  Service  work  until  July  1, 
1919.  The  Senate  failed  to  pass  this  measure,  and  the  service 
was  deprived  of  much  needed  funds.  The  Department  of  Labor 
communicated  with  President  Wilson,  who  was  on  his  way  to 
France,  with  the  hope  of  securing  from  the  President  an  allot- 
ment from  funds  appropriated  for  the  national  defense  and 
safety.  The  President  was  unable  to  grant  the  request  on  ac- 
count of  the  fact  that  this  appropriation  was  practically  ex- 
hausted. Thereupon,  the  Department  of  Labor  notified  the  fed- 
eral director  of  the  employment  offices  in  each  state  to  reduce 
the  organization  to  a  skeleton,  beginning  March  22.  Assistance 
from  state  and  municipal  authorities  and  community  organiza- 

76  Ibid.,  pp.  276,  277. 


204  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [418 

tions  was  so  generous  that  in  place  of  reducing  the  number  of 
employment  offices,  which  the  Employment  Service  was  able  to 
maintain  out  of  its  own  funds  from  March  22  to  July  1,  to  56, 
the  number  of  offices  kept  in  operation  during  that  period  was 
490.  In  a  special  session  of  Congress,  May  19,  1919,  appropria- 
tions for  deficiency  items  were  recommended,  and  the  Employ- 
ment Service  received  $272,000,  available  at  the  beginning  of 
the  next  fiscal  year.77 

In  spite  of  financial  troubles  the  United  States  Employment 
Service  did  admirable  work  in  the  trying  months  immediately 
following  the  cessation  of  hostilities.  Between  November,  1918, 
and  June,  1919,  inclusive,  the  service  interviewed  at  the  various 
camps  and  on  the  transports  approximately  2,055,985,  out  of  a 
total  of  2,561,894.  Of  the  number  interviewed  706,509  were  in 
need  of  assistance,  of  whom  115,096  were  referred  directly  to 
employers,  and  the  remainder  to  bureaus.  In  addition  to  this 
number,  a  total  of  16,360  were  registered  by  the  Emergency 
Fleet  Corporation,  the  United  States  Merchant  Marine,  and  the 
United  States  Kailroad  Administration.  Between  December  1, 
1918,  and  June  28,  1919,  the  number  of  service  men  registering 
for  employment  totaled  517,902,  of  whom  a  total  of  321,077 
were  placed.78 

(10)  Summary  of  Employment  Statistics.  The  activities  of 
the  United  States  Employment  Service  from  January,  1918,  to 
June,  1919,  inclusive,  are  shown  in  the  statistical  data  that  have 
been  compiled,  altho,  as  already  suggested,  the  true  value  of  the 
service  cannot  be  thus  measured.  In  the  period  under  considera- 
tion the  Employment  Service  received  calls  for  12,104,184;  it 
registered  7,133,831;  referred  6,470,516  to  positions;  while 
4,976,320  persons  were  reported  placed.  This  means  that  in  a 
period  of  eighteen  months  about  91  per  cent  of  the  persons 
registered  with  the  service  were  referred  to  positions,  and  of 
these  about  78  per  cent  were  placed.  Approximately  10,000 
persons  were  placed  in  jobs  of  all  kinds  each  day  during  this 
period,  without  any  expense  to  the  employers  and  at  the  expense 
of  only  $1.34  per  placement.  It  is  estimated  that  the  saving  in 
fees  to  the  persons  directed  to  employment  by  the  federal  gov- 

77  Seventh  Annual  Report  of  the  Secretary  of  Labor,  1919,  pp.  277,  278. 

78  Ibid.,  p.  292. 


419]  COORDINATION   IN   LABOR   ADMINISTRATION  205 

eminent  in  cooperation  with  states  and  municipalities  aggregated 
fully  $10,000,000,  while  many  millions  more  were  saved  for  the 
nation  through  increased  hours  of  labor  due  to  reduction  of 
labor  turnover  and  the  rapid  placement  of  unemployed  workers.79 
The  nature  of  the  employment  secured  by  the  service  ranged 
from  common  labor  and  domestic  service  to  high-salaried  profes- 
sional and  technical  workers.  "It  was  not  uncommon  for  an 
$1,800  examiner  to  place  a  $15,000  engineer  or  executive." 
Farm  recruitment  was,  of  course,  one  of  the  chief  accomplish- 
ments of  the  service.  Common-labor  placements  constituted 
about  23  per  cent  of  the  total  of  slightly  under  5,000,000  per- 
sons placed,  while  the  other  77  per  cent  comprised  skilled  labor 
and  other  workers  qualified  for  special  positions.  Women  con- 
stituted 20  per  cent  of  the  total  number  of  persons  placed,  and 
"many  a  woman  has  found  in  the  Federal  Employment  Service 
a  gateway  to  the  industrial,  commercial,  or  professional  life  she 
has  desired  to  enter.  Large  numbers  of  college-trained  women 
have  used  the  service,  which  has  been  working  in  conjunction 
with  alumni  associations  throughout  the  country. ' ' 80 

7.     OTHER  ADMINISTRATIVE  AGENCIES 

Woman  in  Industry  Service 

Some  of  the  most  serious  labor  problems  of  recent  years,  espe- 
cialty  during  the  war  period,  have  arisen  out  of  attempts  to  use 
women  workers  effectively  in  various  processes  of  production. 
So  intimate  is  the  relation  between  woman  and  the  future  welfare 
of  the  nation  that  it  is  now  generally  recognized  that  especial 
care  must  be  exercised  in  safeguarding  the  physical  and  moral  in- 
terests of  women  engaged  in  industrial  work.  Profits  rather 
than  the  welfare  of  the  workers  are  likely  to  be  uppermost  in 
the  mind  of  the  entrepreneur,  and  for  this  reason  it  has  become 
increasingly  necessary  for  the  state,  through  the  exercise  of  its 
police  power,  to  establish  necessar3r  safeguards.  The  announce- 
ment of  the  inclusion  in  the  draft  of  all  men  between  the  ages 
of  eighteen  and  forty-five  years  forced  the  attention  of  the  gov- 
ernment and  employers  to  the  problem  of  replacing  men  workers 
in  industry  by  women. 

79  Ibid.,  p.  293. 
so  Ibid. 


206  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [420 

To  deal  with  this  aspect  of  the  labor  problem  during  the  war 
the  Woman  in  Industry  Service  of  the  Department  of  Labor 
was  organized  early  in  July,  1918,  with  Miss  Mary  Van  Kleeck 
as  director,  and  Miss  Mary  Anderson  as  assistant  director.  The 
duties  of  this  service  were  summarized  as  follows:  (1)  Consid- 
eration of  all  general  policies  with  respect  to  women  in  industry 
and  advice  to  the  Secretary  of  Labor  regarding  the  principles 
and  policies  to  be  followed;  (2)  coooperation  with  the  several 
divisions  of  the  Department  of  Labor  in  matters  pertaining  to 
women  in  industry;  (3)  collection  of  data  and  the  useful  tabula- 
tion of  these  data  for  distribution  when  of  particular  interest 
and  help  to  those  concerned  with  the  problems  of  women  in  in- 
dustry; (4)  establishment  of  relations  with  the  governmental 
departments  and  divisions  and  voluntary  agencies  in  so  far  as 
these  related  themselves  to  or  were  interested  in  the  subject  of 
women  in  industry.81  Altho  this  statement  of  the  duties  of  the 
Woman  in  Industry  Service  presumes  that  the  service  was  organ- 
ized primarily  to  determine  policies  concerning  women  in  in- 
dustry, it  has  performed  administrative  functions  and  has  co- 
operated extensively  with  state  departments  of  labor  in  matters 
involving  women  workers.82 

The  War  Labor  Policies  Board  adopted,  and  all  production 
departments  of  the  government  approved,  certain  principles  gov- 
erning the  work  of  the  Woman  in  Industry  Service.  Accord- 
ing to  these  principles  women  might  be  placed  in  essential  occu- 
pations easily  filled  by  them,  such  as  cashier,  clerk,  and  account- 
ant positions;  they  were  prevented  from  entering  occupations, 
such  as  service  in  barrooms  and  saloons,  mines,  and  smelters, 
which  are  unfit  for  them  on  account  of  moral  and  physical  con- 
ditions; the  introduction  of  women  into  hazardous  industries 
such  as  those  using  industrial  poisons  must  be  guided  by  stand- 
ards as  to  health,  comfort,  and  safety  established  by  the  War 
Labor  Policies  Board  and  those  already  defined  by  the  United 
States  Government  and  state  departments  of  labor;  due  regard 
must  be  given  to  regulation  of  hours,  night-work,  and  over-time 
when  women  are  placed  in  new  occupations  such  as  street  rail- 
si  Monthly  Labor  Eeview,  U.  S.  Bureau  of  Labor  Statistics,  August,  1918, 
p.  67. 

82  For  details  of  the  organization  of  the  service  see  Sixth  Annual  Report 
of  the  Secretary  of  Labor,  1918,  pp.  116-122. 


421]  COORDINATION   IN   LABOR   ADMINISTRATION  207 

way  service,  public  messenger  service,  and  elevator  service ; 
recruiting  of  mothers  of  young  children  must  be  discouraged; 
the  possibility  of  hiring  women  must  not  be  made  a  pretext  for 
unnecessary  displacement  of  men ;  employers  were  urged  to  seek 
the  aid  and  advice  of  the  Woman  in  Industry  Service  as  to 
methods  of  introducing  women  workers  and  the  establishment  of 
required  working  conditions. 

Two  things  were  desired  relative  to  the  employment  of  wo- 
men in  essential  industries,  namely,  the  most  efficacious  applica- 
tion of  woman  labor,  and  the  protection  and  conservation  of  the 
health  and  welfare  of  women  workers.  The  necessity  of  guaran- 
teeing these  two  conditions  led  to  the  organization  of  agencies 
in  the  government  to  study  the  problems  underlying  the  employ- 
ment of  women  and  to  advise  the  industries  regarding  hours, 
wages,  and  proper  working  conditions.  To  these  ends,  the  Ord- 
nance department  organized  as  part  of  its  Industrial  Service  Sec- 
tion a  women 's  branch  with  representatives  in  every  district  office 
of  the  department  and  in  the  arsenals  employing  women.  The 
United  States  Railway  Administration  established  a  women's 
section  in  its  Labor  Division.  Then,  of  course,  with  the  intro- 
duction of  coordinated  war  labor  administration  the  Woman  in 
Industry  Service  began  its  work  as  a  part  of  the  Department  of 
Labor,  its  peculiar  functions  being  to  advise  the  Secretary  of 
Labor  on  all  matters  affecting  the  employment  of  women  and  to 
cooperate  with  all  those  agencies  concerned  with  the  production 
of  war  materials  in  so  far  as  their  problems  involved  the  employ- 
ment of  women.83  The  principles  cited  above  and  the  organiza- 
tion of  woman  in  industry  divisions  in  the  several  production 
departments  of  the  government  will  prove  a  valuable  asset  to 
the  nation  even  after  return  to  normal  conditions. 

In  order  to  secure  coordination  in  policies  and  practices  in 
dealing  with  the  problem  of  woman  in  industry  the  Secretary  of 
Labor  authorized  during  the  war  the  formation  of  a  Council  on 
Women  in  Industry,  a  discussional  group  composed  of  repre- 
sentatives from  all  federal  agencies  having  organized  work  re- 
lated to  problems  of  women  workers.  At  the  beginning  of  the 

83  See  ' '  Federal  Policies  for  Women  in  Industry, ' '  by  Miss  Mary  Van 
Kleeek,  Annals  of  the  American  Academy  of  Political  and  Social  Science, 
Vol.  LXXXI,  No.  170  (January,  1919),  pp  87-94. 


208  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [422 

fiscal  year  1920  the  title  of  the  Woman  in  Industry  Service  was 
changed  to  the  Women's  Bureau.  The  continuation  of  this 
branch  of  the  Department  of  Labor  is  a  testimony  of  its  success 
and  value  during  the  war. 

Bureau  of  Industrial  Housing  and  Transportation 
We  have  already  touched  upon  the  problem  of  housing  and 
transporting  workers  attracted  by  high  wages  to  the  centers  of 
war  industries.  Recognition  of  the  seriousness  of  this  problem 
led  to  the  establishment  in  February,  1918,  of  the  United  States 
Bureau  of  Industrial  Housing  and  Transportation  as  a  part  of 
the  Department  of  Labor.  Thus  for  the  first  time  earnest  atten- 
tion was  given  to  a  problem  which,  even  before  the  war,  had 
assumed  a  perplexing  aspect.  European  countries  had  long 
since  created  remedial  measures,  but  the  United  States  was  slow 
to  act.  The  newly  created  bureau  operated  through  the  United 
States  Housing  Corporation  of  the  Department  of  Labor.  This 
corporation  was  incorporated  under  the  laws  of  the  State  of 
New  York,  in  June,  1918,  the  capital  stock  amounting  to  one 
thousand  shares  of  $100,000  each,  998  of  which  were  held  by  the 
Secretary  of  Labor  for  the  government.  The  expenditure  of 
$110,000,000  appropriated  by  Congress  for  housing  war  workers, 
not  including  the  $60,000  set  aside  for  this  purpose  by  the 
United  States  Shipping  Board,  was  placed  under  the  direction  of 
the  Housing  Corporation.84  This  corporation  endeavored  to 
solve  the  housing  problem  by :  (1)  making  available  housing  facil- 
ities through  carefully  conducted  investigations  in  particular 
communities  where  the  need  was  great;  (2)  connecting  through 
improved  transportation  those  places  where  labor  was  in  demand 
with  the  communities  that  possessed  surplus  housing  facilities; 
(3)  encouraging  and  aiding  private  capital  to  build;  (4)  assist- 
ing in  the  proper  distribution  of  the  labor  supply  and  the  plac- 
ing of  war  contracts  in  such  a  manner  as  to  avoid  congestion; 
(5)  constructing  and  operating  of  houses,  apartments,  and  dor- 
mitories; (6)  registering  vacant  houses  and  rooms  and  com- 
mandeering dwellings  not  otherwise  in  use.85  The  organization 
of  the  bureau  included  the  following  divisions:  Architectural, 

84  Monthly  Labor  Review,  U.  S.  Bureau  of  Labor  Statistics,  August,  1918, 
p.  69. 

ss  Ibid.,  February,  1919,  p.  248. 


423]  COORDINATION   IN   LABOR   ADMINISTRATION  209 

Construction,  Engineering,  Fiscal,  Homes  Registration  and  In- 
formation, Industrial  Relations,  Legal,  Operating,  Real  Estate, 
Requirements,  Surveys  and  Statistics,  Town  Planning,  and 
Transportation. 

By  the  end  of  October,  1918,  allotments  for  house  construction 
had  been  provisionally  made  for  76  cities  in  need  of  additional 
facilities  to  shelter  war  workers  on  army  and  navy  contracts ; 
26  developments  were  under  construction,  involving  an  expendi- 
ture of  $37,306,778.88,  estimated  to  house  9,000  families  aggre- 
gating 45,000  individuals.  Up  to  October  10,  financial  allot- 
ments had  been  made  for  50  projects.  Allotments  for  projects 
where  work  had  not  already  been  contracted  for  represented  on 
that  date  an  estimated  expenditure  of  $94,416,350.  On  the  26 
projects  then  under  way  the  estimated  expenditure  was  $66,- 
560,650.86  At  Washington  Navy  Yards  new  construction  was 
planned  as  follows :  14  apartment  houses,  8  stores,  14  two-story 
dormitories,  and  one  mess  hall  —  a  total  of  37  buildings  with  a 
housing  capacity  of  about  two  thousand  persons.  In  the  city  of 
Washington  12  dormitories,  2  cafeterias,  2  administration  build- 
ings, and  2  infirmaries  —  a  total  of  18  buildings  with  accommo- 
dations for  approximately  two  thousand  people  were  constructed ; 
and  additional  facilities  planned  included  10  dormitories,  28 
apartments,  1  administration  building,  I  infirmary,  and  1  cafe- 
teria —  a  total  of  41  buildings  to  house  2,,800  persons.  Financial 
allotments  for  Washington  exceeded  the  $10,000,000  appropri- 
ated by  Congress  for  this  purpose.  In  addition  to  the  above, 
116  houses  in  Washington  alone  were  requisitioned  by  the  bu- 
reau.87 

On  November  11,  when  hostilities  ceased,  the  United  States 
Housing  Corporation  had  under  consideration  94  housing  enter- 
prises and  projects.  For  60  of  these  contracts  had  been  let, 
and  plans  had  been  completed  for  contracts  in  25  cases.  In  the 
case  of  seven  plans  were  in  preparation  or  had  been  ordered, 
while  in  the  case  of  four  projects  construction  had  been  post- 
poned. With  the  signing  of  the  armistice  54  projects  were 
abandoned  and  15  were  curtailed,  while  25  were  proceeded  with 
as  planned.  It  was  estimated  that  it  would  require  $45,000,000 

86  Sixth  Annual  Report  of  the  Secretary  of  Labor,  1918,  pp.  131,  132. 
ST  Ibid.,  pp.  134,  135. 


210  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [424 

to  complete  the  25  projects  which  were  under  way.88  By  May 
19,  1919,  construction  contracts  to  the  extent  of  $4,517,897.92 
had  been  almost  completed,  work  was  under  way  on  contracts 
valued  at  $27,843,226;  contracts  to  the  value  of  $25,111,794.79 
had  been  canceled  at  an  approximate  cost  of  $5,224,477.81. 
There  were  canceled  without  loss  projects  to  the  value  of 
$5,706,614.27,  and  projects  to  the  value  of  $275,000  were  taken 
over  by  the  Army.  Contracts  amounting  originally  to  $63,454,- 
532.98  had  been  reduced  to  a  final  cost  of  $40,782,288.43.89 

Labor  Adjustment  Service 

To  the  Division  jof  Conciliation  and  Labor  Adjustment  Service 
was  entrusted  the  important  task  of  mediation  and  jurisdiction 
over  the  settlement  of  strikes,  lockouts,  and  other  manifestations 
of  maladjustment  in  industrial  relations.  There  was  already  in 
existence  a  large  force  of  conciliators,  and  the  National  War 
Labor  Board  constituted  a  court  of  last  appeal.  These  facilities 
reinforced  by  those  introduced  with  the  Labor  Adjustment  Ser- 
vice did  much  to  prevent  the  spread  of  strikes  and  lockouts  dur- 
ing the  emergency.  Nearly  two  and  one-half  millions  of  wage 
earners,  or  about  three  times  as  many  as  during  the  preceding 
year,  came  within  the  peace-making  activities  of  the  Conciliation 
Division  of  the  Department  of  Labor  during  the  fiscal  year  1918. 
Most  of  these  cases  were  either  adjusted  outright  by  the  division 
or  referred  to  the  War  Labor  Board.  The  importance  of  the 
activities  of  the  Labor  Adjustment  Service  may  be  judged  from 
the  fact  that  in  1918,  the  number  of  men  indirectly  affected  in 
the  cases  handled  totaled  1,315,657,  and  the  total  number  direct- 
ly affected,  1,041,342.  In  the  cases  adjusted  and  those  referred 
to  the  National  War  Labor  Board,  859,239  workers  were  affected 
directly  and  1,122,205  indirectly.90  The  development  of  these 
mediation  activities  is  shown  more  in  detail  in  the  statistical 
data  already  presented  in  this  study.91 

88  Monthly  Labor  Review,  U.  S.  Bureau  of  Labor  Statistics,  February, 
1919,  p.  248. 

89  Seventh  Annual  Eeport  of  the  Secretary  of  Labor,  1919,  p.  185. 
»o  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  pp.  30,  31. 
si  See  p.  126. 


425]  COORDINATION   IN   LABOR   ADMINISTRATION  211 

Information  and  Education  Service 

The  Information  and  Education  Service  was  organized  on 
July  1,  1918,  under  the  act  providing  for  appropriations  to  take 
care  of  sundry  civil  service  expenses  for  the  fiscal  year  1918,  and 
for  other  purposes,  approved  by  the  President  on  the  above  date. 
The  purpose  of  the  act  was  to  enable  the  Secretary  of  Labor  to 
acquire  and  diffuse  information  on  the  subjects  connected  with 
labor.  The  appropriation  for  this  work  amounted  to  $225,000.92 
Mr.  Koger  W.  Babson  was  director  of  this  service.  Under  his 
direction  the  service  endeavored  to  develop  sound  public  senti- 
ment on  labor  questions,  to  combat  unsound  industrial  philoso- 
phies, and  to  present,  especially  to  working  men,  the  real  issues 
of  the  war.  In  addition,  it  secured  the  exchange  of  information 
between  the  departments  of  labor  administration  and  private 
agencies  in  industrial  plants  for  the  execution  of  the  national 
labor  program.93  The  following  divisions  were  created  under 
this  service:  Education,  Information,  Industrial  Plants,  Eco- 
nomics, Posters.  During  the  reconstruction  period  a  sixth  divi- 
sion was  added  known  as  the  Division  of  Public  Works  and  Con- 
struction Department.  These  divisions  did  a  comprehensive 
work.  Material  was  sent  out  daily  to  over  5,000  newspapers,  to 
magazines,  and  business  periodicals;  a  staff  of  19  speakers  and 
several  hundred  volunteer  agents  addressed  trade  unions,  clubs, 
chambers  of  commerce,  and  other  organizations ;  about  1,000,000 
posters  were  distributed  monthly  and  displayed  in  workshops, 
about  30,000  stores,  and  30,000  railway  stations;  committees 
known  as  government  committees  to  promote  contact  between 
workers,  their  employers,  and  representatives  of  the  Department 
of  Labor  were  organized  in  over  12,000  plants,  and  the  extension 
of  this  scheme  to  cover  14,000  establishments  was  planned.94 
Summary  of  Activities.  The  clipping  service  maintained 
by  the  Division  of  Education  covered  150  papers,  with  a  daily 
circulation  ranging  from  20,000  to  400,000,  in  cities  with  popu- 
lations from  32,000  to  5,000,000.  In  this  way  information  was 
disseminated  among  an  average  of  about  12,000,000  readers  each 

02  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  127. 

93  Monthly  Labor  Review,  U.   S.   Bureau  of  Labor   Statistics,   August, 
1918,  p.  69;  Seventh  Annual  Eeport  of  the  Secretary  of  Labor,  1919,  p.  162. 

94  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  pp.  128-130. 


212  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [426 

day.  Its  staff  of  special  writers  contributed  to  magazines  and 
newspapers,  and  the  facilities  of  the  division  were  placed  at  the 
disposal  of  all  persons  desiring  information  for  personal  use  or 
for  publication.  Special  agencies  were  also  used,  including  the 
Carnegie  Institute,  the  Military  Intelligence,  the  American  Edu- 
cational Association,  the  Federal  Board  for  Vocational  Educa- 
tion, the  Signal  Corps  of  the  "War  Department,  and  the  Red 
Cross.  The  Information  Division  through  its  efficient  staff  of 
speakers,  and  a  volunteer  speaking  force  of  400,  contributed 
much  to  the  upbuilding  of  an  industrial  morale,  the  stimulation 
of  production,  the  reduction  of  labor  turnover,  and  the  promo- 
tion of  industrial  peace.  Fifty  of  the  volunteer  speakers  alone 
reported  that  they  had  delivered  1,200  addresses  for  this  pur- 
pose, their  message  reaching  business  men,  employers,  and  work- 
ers. They  emphasized  the  need  of  a  new  vision  in  industry.  To 
carry  this  message  more  intimately  to  the  industrial  workers 
and  employers  the  Industrial  Plants  Division  was  organized  on 
July  5,  1918.  Its  plan  of  organization  proposed  the  establish- 
ment of  war  industries  committees  to  encourage  production, 
reduce  absenteeism  and  tardiness,  eliminate  unnecessary  labor 
turnover,  and  promote  patriotism.  The  Division  of  Economics 
was  largely  an  advisory  body.  It  summarized  policies  and  deci- 
sions that  were  made  by  the  various  labor  adjustment  agencies, 
compiled  the  experience  of  Great  Britain  in  solving  her  many 
labor  problems,  and  made  recommendations  to  other  divisions 
that  sought  advice  in  these  things.  The  Poster  Division  did 
much  to  maintain  the  national  morale,  distributing  from  700,000 
to  1,000,000  posters  monthly. 

Hostilities  ceased  at  the  time  of  the  year  when  unemployment 
is  most  pronounced.  To  meet  this  situation  the  Department  of 
Labor  made  every  effort  to  promote  certain  industrial  activities 
that  had  been  more  or  less  dormant  during  the  war  period,  espe- 
cially public  construction  works  and  private  building.  The  In- 
formation and  Education  Service  was  used  to  encourage  building 
and  buying.  The  Division  of  Public  Works  and  Construction 
Development  was  created  to  supervise  such  activities  as  were 
related  to  building  and  consequently  to  employment.  A  con- 
ference of  economists  was  called  to  discuss  these  important  prob- 
lems, and  an  investigation  of  economic  conditions  was  made. 


427]  COORDINATION   IN   LABOR   ADMINISTRATION  213 

About  26,000  questionnaires  were  sent  out  to  determine  the 
amount  of  building  suspended  during  the  war  and  the  reasons 
why  this  work  was  not  resumed  subsequent  to  the  signing  of 
the  armistice.  Approximately  7,000  replies  were  received,  and 
these  showed  a  total  amount  of  suspended  building  operations  of 
$2,000,000,000.  Of  this  amount  more  than  two-thirds  was  for 
public  works  and  the  remainder  for  private  construction.95 

A  home-owning  campaign  was  instituted.  Campaigns  were 
projected  in  92  cities  and  were  well  organized  in  78.  Corre- 
spondence was  conducted  by  the  Department  of  Labor  with 
nearly  2,000  cities.  A  special  bill  was  drafted  and  presented  to 
Congress  providing  for  a  system  of  banks  to  be  known  as  Fed- 
eral Home  Loan  Banks.  It  involved  the  building  and  loan  asso- 
ciations of  the  country,  7,269  in  number,  with  a  total  member- 
ship of  3,838,612  and  total  assets  of  $1,750,000,000.  To  advance 
loans  more  abundantly  to  home  builders  was  the  primary  object 
of  this  scheme. 

The  Department  of  Labor,  through  its  Information  and  Edu- 
cation Service,  was  active  in  other  ways,  endeavoring  to  solve  the 
labor  problems  of  the  reconstruction  period.  Of  special  interest 
was  the  sending  to  Europe  of  a  commission  of  representative 
employers  for  the  purpose  of  ascertaining  the  following  facts: 
(1)  The  attitude  of  employers  toward  problems  of  labor  with 
special  reference  to  their  idea  of  adjustment  of  disputes;  (2)  the 
views  of  the  working  classes  and  the  attitude  of  the  labor  lead- 
ers; (3)  the  methods  and  plans  of  governments  to  allay  labor 
unrest.  Among  other  subjects  of  interest  the  commission  in- 
vestigated the  shop-steward  movement,  the  Whitley  plan  for 
joint  standing  industrial  councils,  unemployment  insurance, 
health  insurance,  hours  of  labor,  housing,  minimum  wage,  and 
compulsory  arbitration. 

The  valuable  report  of  this  commission  is  summarized  as 
follows : 

1.  Employers  in  Great  Britain  generally  recognize  the  desirability  of 
bargaining  collectively  with  labor. 

2.  Employers  nearly  all  agree  that  collective  bargaining  should  always 
be  undertaken  between  associations  of  employers  and  the  regularly  estab- 
lished well-organized  trade-unions. 

3.  Most  employers  freely  recognize  the  right  of  labor  to  organize;  they 

as  Seventh  Annual  Report  of  the  Secretary  of  Labor,  1919,  p.  168. 


214  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [428 

regard  organization  as  greatly  contributing  to  the  stability  of  industry. 
Some  large  manufacturers  declare  that  they  wish  to  see  every  workman 
within  the  unions,  so  that  they  must  all  come  under  organization  control. 
Others  feel  that  100  per  cent  organization  might  lead  to  dangerous  types  of 
universal  strikes  and  lockouts.  The  more  conservative  employers  appear  to 
make  no  effort  to  help  along  organizations  of  labor,  merely  dealing  with 
such  organizations  when  they  appear  on  the  scene. 

4.  Employees  in  Great  Britain  are  divided  into  sentiment  shading  from 
those  who  want  to  maintain  the  trade-unions  along  the  regularly  established 
so-called  ' '  constitutional ' '  lines  to  ultraradical  socialists. 

5.  Employees  are  nearly  a  unit,  however,  in  expressing  opposition  to  the 
use  of  force.     The  most  radical  desire  "now"  a  complete  overturning  of 
the  present  social  structure,  but  usually  admit  on  close  questioning  that 
' '  now ' '  may  mean  many  years.     They  want  to  ' '  start ' '  now.     Practically 
none  appear  to  approve  of  a  sudden  change,  as  in  Russia. 

6.  Employees  of  the  ultraradical  type  look  askance  at  collective  bar- 
gaining and  organizations  of  labor  and  capital.     They  freely  express  the 
view  that  they  do  not  wish  harmony  between  employees  and  employers,  since 
harmony  would  help  to  continue  the  present  system  of  society. 

7.  Employees   of   the   more   conservative   type     .     .     .     are   largely   in 
accord  with  employers  in  the  desire   (1)   to  head  off  labor  unrest  at  this 
period;    (2)   to  strengthen  the  unions  by  holding  members  under  control; 

(3)  to  increase  production  for  the  sake  of  the  nation,  workmen  included  — 
with  no  restriction  on  output  except  as  it  affects  the  health  of  the  worker; 

(4)  to  leave  control  of  business  policies  in  the  hands  of  those  managing 
the  business. 

8.  Government  officials  appear  to  be  uniformly  of  the  opinion  that  the 
Government  should  function  in  labor  unrest  only  as  an  absolutely  last  un- 
avoidable resort.     On  the  other  hand,  they  maintain  the  right  of  the  Gov- 
ernment to   step  in  when  necessary  in  order  to  protect  public   interests 
against  minorities  which  try  to  force  their  terms  upon  the  people. 

9.  In  general  the  Government,   and  most  employers   and  conservative 
employees,  appear  to  be  agreed: 

That  the  spirit  of  cooperation  between  capital  and  labor  is  highly  desir- 
able. 

That  the  spirit  of  conciliation  is  important  for  the  benefit  of  the  em- 
ployer in  stabilizing  his  business  and  for  the  benefit  of  the  employee  in  pre- 
serving his  regularly  organized  unions. 

That  in  collective  bargaining  the  right-minded  employer  will  not  attempt 
to  return  to  the  pre-war  industrial  era,  and  that  the  right-minded  employee 
will  not  attempt  to  crowd  his  demands  to  the  point  at  which  the  stimulus 
for  private  business  enterprise  will  disappear. 

The  spirit  of  a  genuinely  better  new  (and  not  novel)  era  is  thus  being 
fostered  by  widely  varied  elements  of  Great  Britain's  industrial  system.ss 

w Ibid.,  pp.  171,  172.  The  members  of  this  commission  were:  E.  T. 
Gundlach,  Chicago,  chairman;  E.  J.  Caldwell,  New  York;  Dor  E.  Felt,  Chi- 
cago; William  H.  Ingersoll,  New  York;  Eldon  B.  Keith,  Brockton,  Mass.; 


429]  COORDINATION   IN   LABOR   ADMINISTRATION  215 

The  Information  and  Education  Service,  under  the  direction 
of  the  Secretary  of  Labor,  arranged  a  conference  of  governors 
and  mayors  on  March  3,  4,  and  5,  1919.  At  this  conference  there 
were  present  the  chief  executives  or  their  representatives  from 

47  states,  22  governors  attending  in  person;  mayors  from  184 
cities;  and  representatives  of  municipalities  from  41  out  of  the 

48  states.     The   purpose   of   this   conference   was   to    consider 
means   for  facilitating   industrial   readjustment   in   the   recon- 
struction period.     Steps  were  taken  to  make  this  conference  a 
permanent  institution. 

Training  and  Dilution  Service 

As  suggested  elsewhere  in  this  study,  the  war  made  manifest 
the  dearth  of  skilled  labor  in  the  United  States,  and  we  were 
forced  to  adopt  a  policy  of  intensive  training  in  order  to  meet  the 
demand  for  technically  trained  workers.  To  devise  and  execute 
a  program  for  providing  a  supply  of  skilled  workers  the  Train- 
ing and  Dilution  Service  of  the  Department  of  Labor  was  created 
under  authority  of  the  War  Labor  Administration  Act,  which 
appropriated  $150,000  for  this  work.  Mr.  Charles  T.  Clayton 
was  appointed  director  of.  this  service.  Its  duties  were  to  ascer- 
tain the  best  methods  used  in  industrial  establishments  for  train- 
ing workers  to  do  specific  kinds  of  work;  to  discover  the  need 
for  such  training;  to  provide  information  on  this  subject  to  in- 
dustrial managers  and  employees;  to  inspect  the  operation  of 
training  schemes  and  make  a  report  concerning  them;  to  pro- 
vide for  dilution  of  labor  if  necessary,  with  a  view  to  turning 
over  to  unskilled  laborers  a  large  part  of  industrial  processes 
formerly  performed  by  skilled  workmen;  to  promote  special 
training  wherever  necessary;  and  to  cooperate  with  the  United 
States  Employment  Service  in  all  of  this  work.97 

The  Training  and  Dilution  Service  as  instituted  on  July  16, 
1918,  constituted  of  the  following  divisions:98  (1)  Planning 
Division,  having  charge  of  all  studies  with  regard  to  ways  and 

R.  R.  Otis,  Atlanta,  Ga.  Dr.  Royal  Meeker,  Commissioner  of  Labor  Statistics 
in  the  Department  of  Labor  accompanied  the  commission  as  economic 
adviser,  and  Mr.  B.  M.  Squires,  a  commissioner  of  conciliation  in  the  De- 
partment of  Labor,  as  statistician. 

97  Sixth  Annual  Report  of  the  Secretary  of  Labor,  1918,  p.  124. 

88  The  name  of  the  service  was  later  changed  to  "Training  Service." 


216  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [430 

means  of  training  and  dilution,  and  conducting  these  studies 
through  the  Training,  Research,  and  Information  Sections; 
(2)  Administrative  Division,  comprising  Personnel  and  Ac- 
counts, Statistics  and  Reports,  Correspondence  and  Files 
Sections,  and  fulfilling  the  functions  indicated  by  the  names  of 
these  agencies;  (3)  Training  Division,  including  a  field  service 
with  a  chief,  and  superintendents  in  each  of  twelve  districts 
throughout  the  United  States,  whose  duties  were  to  stimulate 
production  of  war  materials  by  organizing  vestibule  training 
departments  in  industrial  plants  and  to  encourage  industrial 
training  in  public  schools  in  connection  with  plans  provided  by 
the  Federal  Board  for  Vocational  Education ;  (4)  Dilution  Divi- 
sion, whose  functions  included  the  study  of  needs  of  industrial 
plants  for  competent,  skilled  workers,  and  the  ascertaining  of  the 
available  supply  by  the  aid  of  the  United  States  Employment 
Service.  In  addition,  this  division  made  special  studies  of  hy- 
gienic fitness  of  factories  for  the  dilution  of  labor,  through  co- 
operation with  the  Public  Health  Service." 

The  nation's  need  for  workers  with  special  training  may  be 
gathered  from  the  fact  that  during  the  nineteen  months  of  our 
active  participation  in  the  war  1,000,000  persons  were  examined 
for  civil  service  positions  and  400,000  were  actually  supplied  for 
governmental  work.  The  number  of  civilian  employees  in  the 
District  of  Columbia  increased  from  35,000  to  95,000 ;  the  civilian 
forces  of  the  Navy  and  naval  stations  increased  from  less  than 
21,000  to  more  than  100,000,  and  in  government  ordnance  plants 
from  11,000  to  about  40,000.100  Everywhere  the  need  for  trained 
workers  was  great  and  the  supply  scarce.  The  investigations 
and  work  of  the  Training  Service  did  much  to  revive  interest  in 
vocational  education  and  industrial  training  in  the  United 
States. 

The  operation  of  the  service,  including  methods  of  field  work, 
may  be  summarized  as  follows:  (1)  Visiting  employers  who 
were  in  need  of  higher  average  output;  (2)  explaining  industrial 
training;  (3)  analysis  of  plant  operation;  (4)  preparation  of 
plans  for  introducing  training  adapted  to  the  special  needs  of 

99  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  pp.  124,  127. 

100  The  Annals  of  the  American  Academy  of  Social  and  Political  Science, 
LXXXII,  No.  171  (March,  1919),  p.  100. 


431]  COORDINATION   IN   LABOR   ADMINISTRATION  217 

the  plant  under  consideration;  (5)  assisting  the  employer  in 
selecting  his  own  personnel  to  supervise  the  training.  On  June 
30,  1919,  359  companies  had  training  departments;  67  training 
departments  had  been  discontinued;  247  establishments  were 
requesting  information  and  advice  concerning  training  work; 
and  125  companies  were  preparing  to  install  training  systems. 
The  greatest  service  rendered  by  the  Training  Service  consisted 
in  the  plans  it  designed  and  disseminated  in  behalf  of  plants 
desiring  training  methods.  It  was  thus  a  clearing  house  of  in- 
formation for  industries. 

The  experience  of  the  Training  Service  taught  the  nation  the 
lesson  that  any  system  of  industrial  training  designed  for  the 
United  States  must  include  the  following  elements:  (1)  A  clear- 
ing house  of  methods  and  experience;  (2)  a  staff  of  well-trained 
experts  to  study  and  analyze  the  special  problems  of  particular 
industries;  (3)  classification  of  results  and  the  dissemination  of 
knowledge  thus  gained;  (4)  frequent  conferences  of  representa- 
tive employers  and  representative  labor  officials  to  discuss  the 
general  aspects  of  industrial  training  and  efficiency. 

The  value  of  a  Training  Service  to  a  country,  especially  to  the 
United  States,  has  been  well  expressed  by  the  Secretary  of  Labor 
in  the  following  passage : 

The  experience  of  the  service  indicates  that  out  of  the  10,000,000  wage 
earners  now  employed  in  American  factories,  probably  three-fourths  are 
not  properly  qualified  for  their  chosen  occupations.  This  great  body  of 
seven  and  a  half  million  workers  today  has  no  recourse  for  education  suited 
to  its  needs.  With  workers  stumbling  along  from  day  to  day,  oppressed 
with  a  sense  of  inferiority  and  hampered  in  ability  to  produce  the  goods 
the  Nation  needs  and  to  earn  the  wages  they  must  have  to  live,  industrial 
unrest  is  not  surprising.  It  is  the  duty  as  well  as  the  privilege  of  the 
Nation  to  meet  the  need  for  industrial  education  by  showing  employers  how 
to  establish  adequate  training  schools  for  the  workers.  No  single  remedy 
can  be  found  for  industrial  unrest;  its  causes  are  complex.  But  no  element 
in  its  causes  is  larger  or  more  important  than  the  feeling  of  denied  oppor- 
tunity that  oppresses  the  worker  who  knows  that  his  knowledge  of  his  work 
is  insufficient,  and  who  charges  that  denial  upon  a  society  that  ignores  his 
situation  and  will  not  give  him  even  advice  and  suggestions. 

The  sum  of  the  findings  of  the  United  States  Training  Service  is  that 
labor  wants  an  open  way  to  self-development,  a  real  opportunity  for  self- 
advancement,  and  that  through  a  system  of  practical  industrial  training, 
intensive  but  thorough,  lies  more  of  such  opportunity  than  in  any  of  the 
present  accepted  types  of  education.ioi 

101  Seventh  Annual  Eeport  of  the  Secretary  of  Labor,  1919,  p.  161. 


218  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [432 

Working  Conditions  Service 

Throughout  this  study  emphasis  has  been  placed  upon  the 
necessity  of  supervising  working  conditions,  which  under  the 
demand  for  increased  production  during  an  emergency  are  very 
likely  to  become  intolerable.  It  was  imperative  that  there  be 
provided  machinery  for  safeguarding  conditions  of  labor  in  the 
production  of  war  materials.  Under  the  War  Labor  Administra- 
tion Act,  approved  July  1,  1918,  Congress  appropriated  $45,000 
for  the  establishment  of  a  Working  Conditions  Service.  English 
experience  had  demonstrated  the  wisdom  of  providing  super- 
visory power  to  prevent  over-fatigue  and  the  consequent  under- 
mining of  health  and  efficiency.  In  the  United  States  the  laws 
of  several  states  provided  for  safeguards  along  these  lines  and 
the  various  production  departments  of  the  government  had,  of 
their  own  accord,  instituted  strict  regulation  of  working  condi- 
tions under  government  contracts,  but  all  this  effort  lacked  uni- 
formity of  method  and  centralized  control. 

The  duties  of  the  Working  Conditions  Service  in  regard  to 
war  industries  were  the  examination  of  working  conditions,  de- 
termination of  standards,  formulation  and  interpretation  of  reg- 
ulations, establishment  of  the  best  and  most  adequate  means  of 
adoption  and  application  of  these  rules,  and  cooperation  with 
state  authorities  in  all  matters  pertaining  to  conditions  of  em- 
ployment. 

Early  in  August,  1918,  this  service  was  finally  organized  with 
Mr.  Grant  Hamilton  as  director.  Administrative  policies  were 
executed  by  the  following  divisions:  (1)  The  Division  of  In- 
dustrial Hygiene  and  Medicine,  cooperating  with  the  United 
States  Public  Health  Service.  The  functions  of  this  Division 
were  to  provide  medical  preventive  methods,  to  maintain  the 
health  of  workers,  to  reduce  occupational  diseases,  and  to  dis- 
cover health  hazards  with  a  view  to  reducing  labor  turnover. 
(2)  Division  of  Labor  Administration,  the  duties  of  which  con- 
sisted in  studying  the  general  problems  of  labor  administration, 
including  scientific  management,  fatigue,  auditing;  prevention 
of  regimentation  and  promotion  of  individual  initiative;  and, 
finally,  examination  of  "the  attitude  and  policies  of  management 
toward  employees  and  the  personal  relations  between  employers 
and  employed."  (3)  Division  of  Safety  Engineering,  cooperat- 


433]  COORDINATION   IN   LABOR   ADMINISTRATION  219 

ing  with  the  Bureau  of  Standards  in  the  formulation  of  stand- 
ards for  mechanical  safety.102  The  service  offered  to  industries 
a  consultant  coterie  of  specialists  in  employment  management, 
industrial  relations,  sanitation,  ventilation,  illumination,  medical 
supervision  and  service,  and  accident  prevention.103 

Investigation  and  Inspection  Service 

The  War  Labor  Administration  Act  appropriated  the  sum  of 
$300,000  for  the  maintenance  of  an  Investigation  and  Inspection 
Service.  This  service  was  established  and  ready  for  work  about 
August  15,  1918,  under  the  direction  of  Mr.  Ethelbert  Stewart. 
The  duties  of  this  service  included  cooperation  with  the  other 
services  of  the  Department  of  Labor  in  matters  pertaining  to 
methods  of  inspection,  investigation,  and  examination  of  em- 
ployment conditions,  but  did  not  include  mediation  or  expert 
training  activities.  It  was  really  organized  to  serve  the  other 
branches  of  the  Department  of  Labor,  and  was  equipped  with  a 
sufficient  staff  of  inspectors  and  examiners  to  handle  the  work 
of  inspection  and  investigation  for  those  branches.  To  October 
15,  1918,  156  investigations  and  inspections  had  been  made  in 
compliance  with  requests  from  other  services.104  A  corps  of 
about  50  investigators  and  inspectors  was  employed  for  this 
purpose.  Numerous  other  investigations  were  made  prior  to  the 
dissolution  of  the  service  on  June  30,  1919. 

Division  of  Negro  Economics 

The  war  made  imperative  the  expenditure  of  every  effort  to 
enhance  the  efficiency  of  all  groups  in  our  population,  and 
focused  immediate  attention  upon  elements  in  industrial  unrest 
to  which  as  a  nation  we  had  been  indifferent.  These  problems 
of  inefficiency  and  unrest  were  nowhere  more  perplexing  than 
among  the  negro  element  in  our  population,  comprising  over 
one-tenth  of  our  people  and  constituting  about  one-sixth  of  those 
gainfully  employed.  Race  prejudice  in  relation  to  labor  turn- 
over and  unrest  is  only  now  beginning  to  attract  attention.  Mal- 

102  Sixth  Annual  Eeport  of  tlie  Secretary  of  Labor,  1918,  p.  138. 

103  The  Working  Conditions  Service  was  discontinued  at  the  end  of  the 
fiscal  year  1918-1919,  because  of  the  failure  of  Congress  to  appropriate 
funds  for  its  maintenance. 

104  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  pp.  122,  123. 


220  DEVELOPMENT  OP  WAR  LABOR  LEGISLATION  [434 

adjustment  between  the  colored  and  white  groups  of  our  popula- 
tion has  penetrated  the  lines  of  industrial  relations,  and  there  is 
little  doubt  that  the  efficiency  and  skill  of  the  black  man  have 
been  suppressed  as  a  consequence.  Whatever  of  creative  impulse 
and  initiative  lie  dormant  in  the  African  race  have  not  been 
given  free  play  in  American  industrial  life  any  more  than  in 
American  political,  social,  and  intellectual  life.  Comprehension 
of  this  situation  was  instrumental  in  the  establishment  of  a  Divi- 
sion of  Negro  Economics  in  the  Department  of  Labor.  This 
action  was  the  direct  outcome  of  a  series  of  conferences  held  by 
the  Advisory  Council.  Dr.  George  E.  Haynes  was  appointed  by 
the  Secretary  of  Labor  to  the  position  of  director  of  Negro  Eco- 
nomics whose  function  it  is  to  advise  the  Secretary  on  matters 
pertaining  to  the  negro  wage  earner  in  relation  to  industrial  and 
agricultural  production,  and  the  promotion  of  cooperation  be- 
tween the  two  races. 

To  realize  the  purposes  for  which  it  was  organized,  this  Divi- 
sion has  promoted  the  establishment  of  cooperative  committees  of 
white  and  colored  citizens  in  states  and  localities  where  labor 
problems  arise  out  of  the  relation  between  the  races.  The  ad- 
ministration of  policies  was  delegated  to  a  staff  of  state  super- 
visors of  negro  economics,  who  worked  in  intimate  coopera- 
tion with  the  federal  state  directors  of  the  United  States  Em- 
ployment Service.  Many  conferences  were  held  in  North  Caro- 
lina, Georgia,  Kentucky,  Ohio,  Florida,  Mississippi,  and  Illinois, 
for  the  purpose  of  enlisting  the  aid  of  numerous  local  and  state 
fraternal,  religious,  and  governmental  organizations.  In  seven 
states,  state  negro  workers  advisory  committees,  composed  of 
representative  negroes  and  cooperating  white  citizens,  were  ap- 
pointed up  to  October  1,  1918,105  and  the  appointment  of  similar 
committees  was  under  way  in  five  additional  states.106  Also 
county  and  city  committees  had  been  appointed  in  seven  of  these 
states  and  were  planned  for  several  others.  State  supervisors  of 
negro  economics,  along  with  special  agents  cooperating  with  the 
federal  state  directors  of  the  United  States  Employment  Ser- 

K>5  These  states  were,  Florida,  Georgia,  Mississippi,  North  Carolina,  Ohio, 
Virginia,  and  Kentucky. 

lo*  These  states  were  Illinois,  Michigan,  Missouri,  Pennsylvania,  and 
New  Jersey. 


435]  COORDINATION   IN   LABOR   ADMINISTRATION  221 

vice,  had  been  appointed  in  eleven  states.107  No  other  step  of 
recent  decades  has  promised  to  be  so  constructive  in  increasing 
the  industrial  efficiency  of  the  negro  and  in  promoting  more 
amicable  relations  between  the  two  major  races  of  the  North 
American  continent.  The  provision  for  such  a  division  was  not 
merely  a  matter  of  economic  expediency  but  of  social  justice,  for 
a  race  that  constitutes  so  large  a  part  of  our  population  and  has 
contributed  so  much  to  the  economic  and  military  effectiveness  of 
the  nation  in  a  great  emergency  like  the  recent  war  is  entitled  to 
representation  in  that  department  of  the  government  whose 
function  it  is  to  advance  the  welfare  of  the  nation's  workers. 

Civilian  Insignia  Service 

The  work  of  this  service  was  purely  incident  to  the  war,  but 
recognizes  a  principle  worthy  of  wider  application  in  peace-time 
production,  namely,  the  value  of  a  recognition  of  merit  as  an 
incentive  to  production  and  industrial  good  will.  Under  the 
direction  of  this  service  war  industry  badges  for  excellence  in 
industrial  work  were  distributed.  These  badges  were  awarded 
to  civilians  employed  at  least  four  months  in  certain  essential 
war  industries  which  conformed  to  requirements  prescribed  by 
the  government,  and  adopted  as  a  part  of  their  government  con- 
tracts the  principles  of  the  War  Labor  Board  as  announced  in 
the  President's  Proclamation  of  April  8,  1918.  For  employment 
beyond  four  months  additional  recognition  was  given.108 

Commission  on  Living  Conditions 

During  October,  1918,  the  Secretary  of  Labor  appointed  a 
Commission  on  Living  Conditions.109  It  was  the  particular  func- 
tion of  this  commission  to  discover  where  bad  living  conditions 
were  a  factor  in  impeding  production  of  necessary  war  materials 
and  to  devise  ways  and  means  of  improving  such  conditions.110 

107  These  states  included  Mississippi,  Florida,  Georgia,  North  Carolina, 
Ohio,  Virginia,  Illinois,  New  Jersey,   New  York,   Alabama,  and   Missouri. 
Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  pp.  109-111. 

108  Monthly  Labor  Review,  U.   S.   Bureau  of  Labor  Statistics,  August, 
1918,  p.  68. 

loo  The  members  of  this  commission  were:  Mr.  John  E.  Richards,  Mr. 
J.  Horace  McFarland,  Mrs.  Eva  W.  White,  Mr.  John  A.  Voll,  and  Miss 
Edith  Rockwood. 

no  Seventh  Annual  Eeport  of  the  Secretary  of  Labor,  1919,  p.  186. 


222  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [436 

The  first  meeting  of  the  commission  was  held  on  October  12, 
1918.  Conferences  were  called  in  which  several  departments  of 
the  government  took  part,  including  the  War  Department, 
United  States  Housing  Corporation,  and  other  government 
agencies  that  related  themselves  in  any  way  to  the  problem  of 
living  conditions.  At  this  conference  ways  and  means  of  mak- 
ing a  survey  of  conditions  were  considered.  It  was  found  that 
the  lack  of  recreational  facilities  in  war  industrial  communities 
was  one  of  the  most  important  problems  demanding  attention. 
The  Playground  and  Recreation  Association  of  America  was 
asked  to  assume  charge  of  the  task  of  coordinating  and  stimu- 
lating local  agencies  in  war  industrial  communities  to  meet  the 
needs  of  the  workers. 

In  Washington  the  commission  secured  the  use  of  the  Emer- 
gency Hospital  for  war  workers  suffering  from  influenza  after 
the  first  epidemic  had  passed,  assisted  the  War  Camp  Com- 
munity Service  in  a  program  for  recreation  for  government  em- 
ployees, suggested  the  organization  of  a  Federal  Workers  Social 
Service  for  the  purpose  of  studying  the  working  and  living 
conditions  of  government  employees,  sponsored  government 
hotels,  and  assisted  many  communities  in  solving  problems  of 
living  conditions.  The  Commission  on  Living  Conditions  was 
really  an  adjunct  of  the  United  States  Housing  Corporation  and 
was  financed  out  of  the  allotment  of  $25,000  set  aside  by  that 
corporation  for  the  purpose  of  investigating  and  improving  liv- 
ing conditions. 

Summary.  The  outstanding  features  of  this  coordinated 
war  labor  administration  are  worthy  of  mention.  Unlike  the  regu- 
latory measures  devised  for  the  control  of  food,  fuel,  finance,  and 
trade,  our  labor  administration  was  created  largely  without  the 
authority  of  statute.  This  non-statutory  character  was  a  desir- 
able feature,  for  it  permitted  a  great  degree  of  flexibility  and  elas- 
ticity in  effecting  the  readjustments  made  necessary  by  the  condi- 
tions of  the  great  emergency.  Another  characteristic  of  this 
labor  program  was  the  method  used  in  enforcing  the  awards  and 
findings  of  such  bodies  as  the  National  War  Labor  Board. 
Threats  to  cancel  contracts  made  by  the  government  or  to  com- 
mandeer the  plants  of  recalcitrant  employers  who  refused  to 
accept  and  abide  by  the  awards  constituted  an  effective  means  of 


437]  COORDINATION   IN   LABOR   ADMINISTRATION  223 

enforcing  decisions.  During  the  war  this  indirect,  non-statu- 
tory compulsion  was  made  possible  by  the  amenability  of  indus- 
trial management  and  workers  to  public  opinion,  and  espe- 
cially because  of  the  advantageous  relation  of  the  government  to 
production  as  a  great  employer  of  labor  in  its  own  plants,  and  as 
the  large  purchaser  of  products  during  the  crisis. 

The  new  war  labor  administration  program  resulted  in  cen- 
tralization of  control  with  decentralization  of  administration  by 
agencies  in  intimate  touch  with  the  labor  problems  that  arose  in 
industry;  continuation,  under  a  coordinated  administration,  of 
the  industrial  sections  of  the  production  departments  of  the  gov- 
ernment, thus  eliminating  duplication  of  effort  and  conflict  of 
authority;  flexibility  of  organization  that  allowed  prompt  re- 
adjustment to  the  exigencies  that  appeared ;  protection  of  exist- 
ing labor  safeguards ;  formulation,  adoption,  and  enforcement  of 
fundamental  regulatory  measures  designed  to  promote  the  wel- 
fare of  labor  and  maintain  industrial  efficiency;  mitigation  of 
the  evils  accruing  from  industrial  unrest  by  the  elimination  of 
the  causes  of  such  unrest ;  and  the  promotion  of  a  better  under- 
standing between  management,  labor,  and  the  government. 


CHAPTER  VII 

CONCLUSION 

What  have  the  experiences  of  the  last  few  years  taught  the 
United  States  concerning  the  important  problem  of  industrial 
relations  and  labor  administration  ?  The  consensus  of  opinion  is 
that  much  has  been  learned  which  will  enable  us  to  approach 
more  scientifically  and  to  deal  more  successfully  with  these  prob- 
lems in  the  future.  There  have  been  significant  changes  in  the 
thought  of  the  world  regarding  the  multiplicity  of  industrial 
problems  involving  labor  arid  their  solution.  The  postulate  of 
August  Comte  that  ideas  rule  the  world  or  throw  it  into  chaos 
was  never  more  clearly  demonstrated  than  during  the  recent 
crisis.  Especially  is  this  true  in  regard  to  the  relations  between 
labor  and  capital,  and  the  numerous  elements  in  the  productive 
process  as  these  relate  themselves  to  the  human  factor  in  pro- 
duction. In  analyzing  the  labor  problem  of  war-time  we  were 
forced  to  readjust  our  perspective  and  that  readjustment  pos- 
sesses a  fair  degree  of  permanence.  Before  considering  the  most 
important  lessons  that  have  been  learned  about  industrial  rela- 
tions and  labor  administration  during  the  war  it  is  necessary  to 
summarize  the  tendencies  outlined  in  the  foregoing  pages. 

Summarizing  our  study  it  may  be  said  that :  ( 1 )  In  its  pro- 
gram of  economic  readjustment  for  the  exigencies  of  war  the 
United  States,  like  other  belligerent  nations,  found  it  necessary 
and  expedient  to  abandon  its  customary  policy  of  laissez-faire 
and  to  adopt  in  its  stead  a  policy  and  program  of  extensive  gov- 
ernmental interference  and  regulation.  This  new  policy  was 
characterized  by  concentration  of  control  and  coordination  of 
administration.  (2)  Concentration  of  control  and  correlation  of 
administrative  activities  were  not  extended  to  include  the  ways 
and  means  of  dealing  with  the  multiplicity  of  labor  problems 
that  grew  in  magnitude,  until  we  had  been  in  the  struggle  for 
almost  a  year.  During  the  first  year  of  our  participation  in  the 
war  our  labor  policy,  in  so  far  as  we  possessed  one,  was  decen- 

224 


439]  CONCLUSION  225 

tralized  and  heterogeneous  in  respect  to  methods  of  control  and 
administration.  (3)  Industrial  unrest  during  the  war  was  due 
to  two  sets  of  causes,  the  one  set  general  in  character  and 
found  in  American  industry  as  a  whole,  while  the  other  group, 
more  specifically  tho  not  exclusively,  was  operative  in  par- 
ticular industrial  establishments.  These  two  groups  of  condi- 
tions, it  .will  be  recalled,  included  the  high  cost  of  living,  ab- 
sentee ownership  of  industry  and  autocratic  government  of  in- 
dustrial plants,  inequality  in  wage  standards,  faulty  distribution 
of  labor  and  the  absence  of  governmental  machinery  to  effect 
desired  redistribution,  inadequate  machinery  for  the  adjust- 
ment of  industrial  grievances,  prevalence  of  profiteering,  the 
spread  of  radical  philosophies,  the  movement  for  a  shorter  work- 
day, insufficient  housing  and  transportation  facilities,  discrimina- 
tion against  union  workers  and  opposition  to  all  forms  of  collec- 
tive bargaining,  unfavorable  conditions  of  employment,  the  de- 
mand for  a  minimum  wage  scale  and  increasing  wages,  as  well  as 
some  minor  causes.  (4)  American  labor,  generally  speaking, 
was  loyal  to  the  government  and  contributed  greatly  to  the  suc- 
cessful prosecution  of  the  war.  Labor's  policy  was  not  always 
unselfish.  In  fact  there  were  many  evidences  of  a  selfish  atti- 
tude, but  most  of  the  seemingly  disloyal  conduct  on  the  part  of 
workers  was  traceable  to  enemy  propaganda  or  to  bad  industrial 
conditions,  chiefly  the  latter,  for  enemy  agents  merely  took 
advantage  of  an  existing  industrial  situation  to  spread  disloyal- 
ty. (5)  With  the  development  of  a  centralized  and  coordinated 
labor  administration  founded  upon  the  broad  principles  of  social 
and  economic  justice,  the  problem  of  labor  unrest  and  other 
acute  industrial  difficulties  were  solved  with  unprecedented  suc- 
cess. To  this  success  the  broadmindedness  and  patriotism  of 
the  representatives  of  management,  employees,  and  the  govern- 
ment contributed  greatly. 

1.     SOME  EESULTS  OF  THE  WAR  THAT  AFFECT  INDUSTRIAL 

KELATIONS 

With  the  above  summary  in  mind  we  may  return  to  a  consid- 
eration of  the  lessons  which  the  United  States  has  learned  in 
dealing  with  the  various  elements  in  the  labor  problem  during 
the  great  emergency.  If  the  war  has  resulted  in  any  construc- 
tive effect  upon  industrial  society  it  has  certainly  demonstrated 


226  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [440 

the  possibility  and  practicability  of  harmonious  relations  and 
earnest  cooperation  between  the  parties  to  industry  —  capital, 
management,  labor,  and  the  government.  For  the  first  time 
in  the  annals  of  American  industry,  management  and  labor 
throughout  the  entire  country  accepted  certain  fundamental 
standards  of  work  and  convened  in  joint  conferences  for  the 
purpose  of  considering  their  grievances  and  adjusting  their  diffi- 
culties on  the  basis  of  these  principles  and  standards.  These 
joint  conferences  were  common  in  particular  establishments  be- 
fore the  war,  but  the  history  of  conciliation  and  mediation  dur- 
ing the  recent  war  shows  that  they  were  never  so  numerous  nor 
characterized  with  so  much  rationality  and  amicability  as  in 
this  critical  period.  This  intimate  association  of  the  representa- 
tives of  management  and  capital  with  the  representatives  of 
labor  has  done  much  to  modify  the  harsh  opinion  each  group  of 
interests  has  held  concerning  the  other,  and  should  contribute 
materially  to  the  elimination  of  the  antagonism  that  has  char- 
acterized modern  industrial  relations  and  disrupted  industrial 
peace.  Workers  have  learned  that  employers  are  men  of  like 
passions  as  themselves,  actuated  by  the  same  motives  not  only 
for  economic  gain  but  for  fair  dealing  and  social  and  cultural 
progress,  not  blind  to  the  rights  of  labor  nor  indifferent  to  jus- 
tice for  the  proletariat.  On  the  other  hand,  employers  have  dis- 
covered that  workers  possess  a  keen  sense  of  justice  and  fair 
play,  a  large  measure  of  rationality,  a  profound  respect  for  the 
rights  and  deserts  of  that  superior  managerial  ability  without 
which  the  production  of  wealth  could  never  have  attained  nor 
continue  its  present  efficiency,  and  that  they  respond  readily 
and  generously  to  a  proper  appeal. 

Labor  and  capital  have  finally  appeared  to  each  other  in  a 
truer  light  than  formerly.  Labor  is  gradually  being  looked 
upon  as  something  more  than  a  marketable  commodity  to  be 
bought  and  sold  in  obedience  to  the  operation  of  blind  economic 
laws  or  the  higgling  and  manipulation  of  powerful  bargainers. 
It  is  seen  that  labor  is  inseparable  from  the  laborer  who  possesses 
the  qualities,  rights,  and  dignity  of  a  human  being  in  a  civilized 
community.  To  buy  labor  cheaply  is  to  obey  the  powerful  eco- 
nomic motive  of  self-interest,  but  many  employers  have  learned 
that  this  is  but  to  sacrifice  human  welfare  and  to  disregard  the 


CONCLUSION  227 

human  factor  in  industry,  and  that  in  the  long  run  cheap  labor 
may  prove  to  be  expensive  labor,  not  only  for  society  but  for 
the  employer  himself. 

Likewise,  capital  has  appeared  in  a  truer  light.  Altho  differ- 
ent from  labor  in  that  it  is  divorceable  from  its  owner,  capital, 
nevertheless,  is  but  a  collective  designation  for  the  capitalists  — 
a  group  of  human  beings  having  all  the  attributes  of  humanity 
and  not  necessarily  selfish.  The  capitalist  like  the  laborer  is,  in 
the  last  analysis,  a  complex  of  human  interests,  and  a  fuller 
understanding  of  the  motives  and  impulses  that  actuate  his  fel- 
lows may  be  relied  upon  to  guarantee  a  fuller  measure  of  indus- 
trial fair  play  and  justice.  Class  hatred  and  the  so  called  class 
struggle  have  been  softened  under  the  war-time  practice  of 
bringing  capital  and  labor  closer  together  and  a  fuller  under- 
standing of  each  other  has  narrowed  the  breach  that  for  years 
has  been  widening.1 

Is  this  changed  point  of  view  a  temporary  phenomenon,  an 
impulse  growing  out  of  loyalty  to  the  nation  in  a  great  emer- 
gency, or  does  it  presage  a  permanent  change  in  the  perspective 
and  psychosis  of  the  parties  to  industry  ?  There  is  disagreement 
concerning  the  answer  to  this  query,  some  holding  that  the  new 
attitude  is  a  permanent  by-product  of  the  war  while  others  be- 
lieve it  will  pass  away  with  the  return  to  peace  and  the  post-war 
struggle  for  markets  and  profits.  This  much  can  be  said :  The 
prevailing  sentiment  of  the  press,  the  platform,  the  pulpit,  and 
the  representatives  of  the  commercial  and  conservative  labor  in- 
terests of  the  country,  as  well  as  of  students  of  the  labor  problem, 
is  that  the  time  was  never  more  opportune  for  the  reconciliation 
of  labor  and  capital  and  these  parties  to  industry  seemed  never 
more  desirous  and  willing  to  understand  each  other  and  to  estab- 
lish conditions  of  permanent  peace.2  This  changed  attitude  is 

1  The  writer  is  cognizant  of  the  fact  that  radical  forces  in  the  United 
States,  as  in  Europe,  have  not  surrendered  the  doctrine  of  class  war  and 
that  expropriation  of  the  property  owning  class  is  widely  advocated,  but 
there  is  abundant  evidence  of  more  conciliatory  spirit  in  industrial  relations 
and  of  a  desire  to  establish  democratic  government  of  industry,  both  on  the 
part  of  capital  and  of  labor. 

2  The    widespread   industrial    unrest   that    has    appeared    in    the    United 
States  subsequent  to  the  war  may  seem  to  deny  the  validity  of  this  conclu- 
sion, but  it  is  still  true  that  all  parties  to  the  labor  controversy  are  striving 
to  discover  a  permanent  basis  for  harmony. 


228  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [442 

not  universal,  but  there  are  many  indications  of  its  prevalence. 

A  second  result  of  the  war  pertaining  to  industrial  relations 
is  that  it  has  made  very  clear  the  magnitude  of  the  community's 
interest  in  the  industrial  system,  particularly  in  the  personal 
relation  in  industry  and  the  conditions  of  employment.  The 
absolute  dependence  of  national  security  and  progress  upon  both 
hand-workers  and  brain-workers  has  been  clearly  demonstrated 
during  the  recent  international  cataclysm,  and  this  fact  has 
stimulated  the  interest  of  the  community  in  the  conditions  of 
work  and  service.  Society  is  directly  or  indirectly  a  party  to 
every  industrial  compact,  for  the  production,  exchange,  and  dis- 
tribution of  wealth  are  in  a  large  measure  determined  by  existing 
economic  and  political  institutions  which  have  their  basis  and 
sanction  in  law.  Whatever  one  may  think  of  the  present  eco- 
nomic and  political  systems,  he  cannot  gainsay  that  they  have 
legal  sanction,  and  in  a  democracy  like  ours  it  is  commonly  as- 
sumed that  law  is  the  expression  of  the  will  of  the  majority. 
Admittedly,  legal  institutions  and  the  statutes  upon  which  they 
rest  may  be  out  of  joint  with  the  thought  and  philosophy  of  the 
present,  but  the  machinery  of  democratic  government  affords  an 
opportunity  for  orderly  readjustment  when  the  will  of  the  ma- 
jority so  demands.  Just  as  it  is  the  duty  of  a  democratic  gov- 
ernment to  register  and  obey  the  will  of  the  majority,  so  also  is 
it  obliged  to  protect  existing  personal  and  property  rights  and 
other  institutions  until  such  time  as  these  institutions  and  rights, 
in  the  process  of  social  evolution  which  is  the  barometer  of  the 
collective  will,  shall  be  modified  or  abandoned.  This  does  not 
mean  that  it  is  the  duty  of  the  government  to  countenance  the 
abuse  of  personal  and  property  rights ;  rather  should  it  prevent 
such  abuse.  It  is  one  of  the  peculiar  functions  of  government 
to  maintain  law  and  order  in  industry  and  in  fulfilling  this  ob- 
ligation the  state  becomes  an  active  participant  in  the  industrial 
process. 

Industrial  organization  is  not  independent  of  and  divorceable 
from  the  general  societal  organization.  The  industrial  process 
is  but  one  phase  of  the  larger  social  process  which,  viewed  in  its 
totality,  constitutes  what  is  commonly  known  as  the  life  of  soci- 
ety. For  this  reason  maladjustment  in  wealth-producing  and 
wealth-distributing  machinery  has  serious  effects  upon  the  entire 


443]  CONCLUSION  229 

social  structure,  and  industrial  strife  involves  not  only  the  in- 
terests of  the  direct  parties  to  the  labor  contract,  but  the  peace, 
welfare,  and  progress  of  society  as  well.  It  has  long  since  been 
recognized  that  conditions  of  wealth-production  and  wealth-dis- 
tribution, such  as  wages  and  hours  of  labor,  sanitation,  ventila- 
tion, lighting  and  other  factory  and  mine  equipment,  have  a 
direct  influence  upon  the  public  health,  national  efficiency,  and 
welfare,  and  in  order  to  protect  its  general  interests  the  state, 
through  the  exercise  of  its  police  power,  has  legitimately  regu- 
lated industrial  conditions.  The  period  of  the  world  war  has 
done  much  to  emphasize  the  necessity  of  these  protective  meas- 
ures and  to  justify  the  action  of  the  state,  not  only  in  prescrib- 
ing regulations  that  conduce  to  the  general  welfare,  but  also  in 
formulating  principles  that  will  maintain  law  and  order  in  in- 
dustry and  guarantee  permanent  industrial  peace.  There  is 
reason  to  believe  that  the  future  will  witness  greater  rather  than 
less  activity  on  the  part  of  the  state  as  a  party  to  industry.  It 
would  seem,  however,  that  whereas  the  state  in  providing  regu- 
latory legislation  in  the  past  has  placed  the  emphasis  upon  puni- 
tive measures,  the  tendency  now  is  to  introduce  voluntary  cor- 
rective regulations  by  educating  the  employer  on  the  economy 
and  efficiency  of  protective  standards  in  industry. 

Increased  activity  of  the  state  as  a  party  to  industry  does  not 
mean  nor  express  a  tendency  towards  collective  ownership  and 
operation  of  the  instruments  of  production,  as  is  feared  by  some, 
but  rather  does  it  indicate  a  deeper  interest  on  the  part  of  the 
community  in  one  of  the  most  important  phases  of  its  collective 
life  —  the  production  and  distribution  of  wealth.  It  is  some- 
times stated  that  we  have  measurably  solved  the  problem  of  pro- 
duction of  wealth,  and  that  all  that  remains  to  usher  in  social 
and  economic  justice  is  an  equitable  solution  of  the  problem  of 
distribution.3  We  are  becoming  more  and  more  convinced,  how- 
ever, that  many  aspects  of  the  problem  of  production,  especially 
those  involving  the  personal  relation  or  human  factor  in  indus- 
try, are  just  beginning  to  receive  attention.  In  other  words,  al- 
though we  have  measurably  solved  the  general  problem  of  the 

s  See  Professor  E.  C.  Hayes'  pamphlet:  The  Social  Control  of  the 
Acquisition  of  Wealth,  p.  127.  (Reprinted  from  the  publications  of  the 
American  Sociological  Society,  Vol.  XII,  1917.) 


230  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [444 

mechanical  or  technical  side  of  production,  the  psychology  un- 
derlying human  relations  in  industry  is  as  yet  vaguely  under- 
stood. Fuller  comprehension  of  these  psychic  elements  is  a  nec- 
essary prerequisite  to  maximum  efficiency  in  production.4 

American  industry  is  replete  with  demonstrations  of  this 
truth.5  Welfare  schemes  of  various  types  which  are  being 
widely  introduced  into  American  industry  are  manifestations  of 
the  increasing  desire  of  our  industrial  managers  to  understand 
more  clearly  the  impulses  and  motives  that  enter  into  production. 
As  Professor  Irving  Fisher  has  suggested,  industry  as  hereto- 
fore conducted  has  balked  the  fundamental  instincts  of  the 
worker,  and  in  order  to  secure  maximum  production  the  basic 
instincts  of  self-preservation,  self-expression,  self-respect,  loyal- 
ty, love  of  home  making,  worship,  and  play  must  be  satisfied.6 
Industrial  management  must  learn  that  it  is  not  sufficient  to 
give  free  play  to  the  instinct  of  workmanship  or  the  socalled 
creative  impulse,  but  that  it  is  necessary  also  to  satisfy  the  acqui- 
sitive instinct.  If  the  laborer  is  to  be  induced  to  put  forth  his 
best  efforts  on  production  he  must  first  be  guaranteed  a  just 
share  in  the  division  of  the  product.  The  second  condition  is 
the  necessary  prerequisite  of  the  first,  for  without  a  guaranty 
of  a  fair  division  of  the  product  the  worker  will  not  exert  his 
best  efforts  in  producing  that  product.  This  is  fundamental  to 
a  clear  understanding  of  the  instinctive  basis  of  industrial  or- 
ganization and  operation.  In  the  past  the  entrepreneur  has  been 
concerned  chiefly  with  technical  problems  of  organization  and 
systematization  of  industry  in  relation  to  production ;  the  future 
will  witness  greater  emphasis  upon  the  human  element  in  pro- 
ductive processes.  This  new  appreciation  of  the  human  element 

*  See  F.  S.  Lee,  The  Human  Machine  and  Industrial  Efficiency ;  O.  Tead, 
Instincts  in  Industry,  A  Study  of  Working-Class  Psychology;  H.  Marot, 
Creative  Impulse  in  Industry. 

5  Among  the  conspicuous  examples  of  the  consideration  of  the  human 
factor  in  industry  are  the  following:      Sears  Roebuck  &  Co.,  Montgomery 
Ward  &  Co.,  The  International  Harvester  Co.,  The  Colorado  Iron  and  Fuel 
Co.,  The  Ford  Motor  Co.,  Hart,  Schaffner  &  Marx,  The  American  Rolling 
Mill  Co.,  The  Harris  Trust  and  Savings  Bank  of  Chicago,  and  the  Standard 
Oil  Co.,  of  New  Jersey. 

6  See  Professor  Fisher 's  paper,  ' '  Humanizing  Industry, ' '  the  Annals  of 
the  American  Academy  of  Political  and  Social  Science,  Vol.  LXXXII,  No. 
171  (March,  1919),  pp.  83-90. 


445]  CONCLUSION  231 

in  industry  is  born  of  the  desire  for  increased  efficiency  in  pro- 
duction and  of  the  newer  conception  of  human  values.  It  is  a 
change  that  will  alter  the  type  of  industrial  management. 
"Heretofore  the  Chief  Executives  of  important  industrial  cor- 
porations have  been  selected  largely  because  of  their  capacity 
as  organizers  or  financiers.  The  time  is  rapidly  coming,  how- 
ever, when  the  important  qualifications  for  such  positions  will 
be  a  man's  ability  to  deal  successfully  and  amicably  with 
labor. ' ' 7  The  war  has  emphasized  the  necessity  of  this  new 
basis  of  selecting  the  managers  of  industry. 

A  third  result  of  the  war  affecting  the  labor  problem  is  the 
discovery  of  the  fundamental  weakness  in  our  national  labor 
policy  and  the  creation  of  a  new  labor  administration.  The  old, 
decentralized,  heterogeneous  labor  policy  and  administration 
was  forced,  under  the  pressure  of  a  great  emergency,  to  give 
place  to  a  policy  of  uniform  standards,  concentration  of  author- 
ity, and  coordination  of  administrative  agencies.  With  the  Labor 
Policies  Board  and  the  "War  Labor  Board  at  the  apex  of  our  war- 
time labor  administration,  there  was  little  left  to  be  desired  in  the 
way  of  efficient  organization.  These  two  bodies,  the  former 
essentially  administrative  and  the  latter  primarily,  though  not 
solely,  judicial,  were  responsible  for  the  efficient  manner  in 
which  our  labor  problems  were  solved  during  the  second  year  of 
our  participation  in  the  war.  "WTiat  is  to  become  of  this  new 
policy  and  administration  now  that  the  war  is  over?  There  is  a 
general  demand  for  the  continuation  of  these  war  labor  agencies 
that  have  served  the  country  so  acceptably,  altho  there  developed 
some  opposition  to  the  "War  Labor  Board,  many  manufacturers 
contending  that  the  board  "failed  to  be  impartial,  judicial,  or 
conciliatory,"  and  was  really  "a  labor  surrender  board."  Not- 
withstanding this  criticism,  however,  a  good  majority  of  employ- 
ers endorse  the  establishment  of  a  national  labor  board,  properly 
constituted,  legally  created,  and  vested  with  adequate  authority 
to  enforce  its  decisions.8  It  was  folly  to  abandon  this  new  labor 
administration.  The  United  States  is  in  great  need  of  such 
important  agencies  as  the  Labor  Policies  Board,  the  War  Labor 
Board,  the  Federal  Employment  Service,  the  Woman  in  In- 

7  John  D.  Rockefeller,  Jr.,  The  Personal  Relation  in  Industry,  p.  7. 
s  American  Industries,  Vol.  XIX,  No.  9  (April,  1919),  p.  9. 


232  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [446 

dustry  Service,  the  Industrial  Training  Service,  the  Working 
Conditions  Service,  and  the  Inspection  and  Investigation  Ser- 
vice. For,  as  a  noted  student  of  the  labor  problem  has  remarked, 
"it  is  with  respect  to  labor  policies  and  their  administration 
more  than  aught  else  that  the  old  order  in  Industry  must  give 
place  to  a  new. ' ' 9 

A  fourth  by-product  of  the  war  is  the  definite  formulation  and 
general  acceptance  of  certain  basic  principles  and  standards  of 
industrial  conduct.10  The  introduction  of  uniform  standards 
for  American  industry  as  a  whole  has  filled  a  long  felt  need  in 
labor  administration.  For  some  decades  uniformity  has  char- 
acterized this  country's  standards  for  trade  and  transportation 
enterprises.  Anti-trust  legislation  embodied  in  such  laws  as  the 
Sherman  Act  of  1890  and  the  Clayton  Act  of  1914,  together  with 
the  creation  of  the  Interstate  Commerce  Commission  in  1887  and 
the  subsequent  extension  of  its  powers,  is  evidence  of  an  attempt 
to  prescribe  uniform  regulations  for  competitive  business  enter- 
prises with  a  view  to  preventing  unjust  practices.  Labor  stand- 
ards in  the  United  States,  however,  have  lacked  uniformity  both 
as  to  the  different  states  and  different  industries  within  the  same 
state.  In  recent  years  the  creation  of  state  industrial  commis- 
sions has  done  much  to  introduce  desired  uniformity  in  labor 
standards  within  the  respective  states,  but  until  the  development 
of  war  labor  administration  no  uniform  regulation  existed  for 
the  nation  as  a  whole.11  An  exception  is  found  in  the  Federal 
Child  Labor  Law  of  1916,  which  has  been  declared  unconstitu- 
tional by  the  Supreme  Court  of  the  United  States.  The  lack  of 
uniformity  in  labor  standards  has  made  difficult  the  prohibition 
of  child  labor,  the  establishment  of  minimum  wage  scales,  rea- 
sonable hours  of  employment,  and  other  improved  conditions  of 
work.  Each  state  feared  that  in  passing  regulatory  legislation 
its  industries  would  suffer  in  competition  with  the  industries  of 
the  more  backward  states  which  would  refuse  to  provide  desir- 
able standards.  During  the  war  uniform  regulations  were  laid 

o  King,  W.  L.  Mackenzie,  Industry  and  Humanity,  p.  179. 

10  See  Chapters  V  and  VI. 

n  Unfortunately  Congress  has  not  seen  fit  to  make  permanent  such  ex- 
cellent agencies  as  the  War  Labor  Board,  the  reorganized  United  States 
Employment  Service,  etc.,  etc.,  so  return  to  normal  conditions  will  find  us 
again  without  adequate  machinery  for  labor  administration. 


447]  CONCLUSION  233 

down  for  all  industries  in  any  state  or  territory  of  the  United 
States  that  were  working  on  government  contracts.  Continua- 
tion of  these  uniform  standards  through  adoption  by  all  the 
states  would  do  much  to  solve  many  of  the  perplexing  labor 
problems  that  are  likely  to  arise.  Such  adoption  has  been  urged 
in  the  multiplicity  of  reconstruction  programs  advanced  by 
trade,  financial,  and  labor  associations  in  this  country  and 
abroad,  and  a  program  of  international  labor  standards  has  been 
formulated  by  the  committee  on  labor  at  the  Versailles  Peace 
Conference.12 

2.  THE  FUTURE  RELATIONS  OF  LABOR  AND  CAPITAL 
A  deluge  of  literature  has  appeared  on  the  problems  of  recon- 
struction, and  the  labor  problem  has  received  generous  treat- 
ment.13 Running  through  all  these  treatises  and  reconstruction 
suggestions  there  is  a  note  of  anxiety.  Nations  have  feared  the 
period  of  reconstruction  almost  as  much  as  they  feared  the  war, 
because  of  the  rapidity  with  which  radical  political  and  indus- 
trial movements  have  swept  over  Russia  and  Central  Europe 
and,  to  some  extent,  over  England  and  France.14  It  is  no  small 
task  to  divert  the  energies  of  a  nation  from  the  channels  of 
organized  destruction  incident  to  a  great  international  conflict 
into  the  avenues  of  peaceful  pursuits,  and  there  may  well  be 
some  apprehension  concerning  the  outcome  of  readjustment. 
The  United  States  cannot  forget  the  seriousness  of  conditions 

!2  For  such  programs  see  Problems  of  Reconstruction,  published  by  the 
American  Association  for  International  Conciliation,  New  York  City,  The 
Reconstruction  Program  of  the  American  Federation  of  Labor;  Report  of 
the  Employers'  Industrial  Commission  of  the  United  States  Department 
of  Labor  on  British  Labor  Problems;  Revised  Covenant  of  the  League  of 
Nations,  Article  23,  The  Peace  Treaty  between  the  Allies  and  Germany; 
Reports  on  Reconstruction  from  English  Sources,  published  by  the  United 
States  Shipping  Board  Emergency  Fleet  Corporation;  Annals  of  tlw  Amer- 
ican Academy  of  Political  and  Social  Science  (January  and  March,  1919), 
Vols.  LXXXI  and  LXXXII;  Reconstruction  Program  of  the  British  Labor 
Party;  Labor  and  Reconstruction  in  Europe,  by  Elisha  M.  Friedman. 

is  See  bibliography  appended  to  this  study. 

x*  Concerning  recent  developments  in  these  movements  in  the  United 
States  see  the  following  articles  by  the  writer :  ' '  The  Present  Status  of 
Socialism  in  the  United  States,"  Atlantic  Monthly,  December,  1919,  and 
"Revolutionary  Communism  in  the  United  States,"  American  Political 
Science  Review,  February,  1920. 


234  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [448 

following  the  Civil  War,  and  has  expected  a  similar  experience 
during  the  present  period.  Thus  far,  however,  no  very  critical 
situations  have  arisen  here,  although  there  are  perplexing  prob- 
lems. A  period  of  readjustment  subsequent  to  a  state  of  war  is 
always  fraught  with  uncertainties.  The  necessity  of  maximum 
production  during  war-time  results  in  an  atmosphere  of  cer- 
tainty and  optimism  in  business  life.  Prices  are  high,  profits 
large;  wages,  interest,  and  rents  climbing;  business  is  sure  of 
returns,  labor  is  certain  of  employment.  With  the  cessation  of 
hostilities,  however,  certainty  gives  way  to  uncertainty,  optimism 
to  fear.  Demands  upon  industry  decline,  armies  are  demobilized, 
thus  creating  a  surplus  of  labor,  and  the  wheels  of  industry 
slow  down.  Numerous  problems  arise,  not  the  least  important 
of  which  center  about  labor.  Redistribution  of  the  labor  supply, 
prevention  of  unemployment,  adjustment  of  wages  to  prices, 
regulation  of  immigration,  and  the  elimination  of  industrial  un- 
rest are  but  a  few  of  the  problems  which  the  beginning  of  the 
readjustment  period  has  uncovered  in  the  United  States. 

One  of  the  most  important  problems  of  the  reconstruction 
period  is  the  establishment  of  conditions  conducive  to  industrial 
peace.  One  of  the  results  of  the  war  is  the  new  dignity  of  the 
laboring  forces  of  the  world.  Never  has  so  much  deference  been 
paid  to  the  will  and  desires  of  labor,  and  at  no  time  has  the 
mass  of  workers  taken  so  keen  an  interest  in  the  destinies  of 
nations  and  claimed  so  great  a  voice  in  the  determination  of 
national  and  international  policies.  Samuel  Gompers,  in  his 
address  at  Laredo,  Texas,  put  it  thus :  ' '  The  time  has  come  in  *" 
the  world  when  the  working  people  are  coming  into  their  own. 
They  have  new  rights  and  new  advantages.  They  have  made 
the  sacrifices  and  they  are  going  to  enjoy  the  better  times  for 
which  the  whole  world  has  been  in  a  convulsion. ' ' 15  Every- 
where labor  representatives  are  presenting  new  and  greater  de- 
mands, and  many  defenders  of  the  status  quo  fear  the  unleash- 
ing of  disintegrating  forces.  Bolshevism,  with  its  reign  of  terror 
and  anarchy  producing  disorder  and  chaos,  has  forced  the  ut- 
most precaution  in  handling  the  labor  problem.  A  strong  desire 
prevails  to  eliminate  conditions  that  lead  to  industrial  unrest 
and  revolution. 

is  Address  before  the  International  Labor  Conference  at  Laredo,  Texas, 
November,  1918. 


449]  CONCLUSION  235 

Compared  with  the  confusion  and  the  general  state  of  affairs 
in  Europe,  the  United  States  is  experiencing  few  serious  difficul- 
ties in  industrial  relations.  The  proletariat  of  America  has  suf- 
fered less  exploitation  and  is  more  intelligent  than  the  masses  of 
the  Old  World,  and  this  condition  constitutes  our  safety  valve 
in  the  reconstruction  period.  The  wrongs  that  infest  American 
industrial  life  can  be  remedied  through  the  intelligent  use  of  our 
present  machinery  of  democratic  government.  We  have  prob- 
lems, very  serious  ones,  pregnant  with  uncertain  consequences. 
The  radical  labor  movement  is  gaining  strength  among  the  un- 
organized groups,  which  constitute  the  majority  of  our  gainfully 
employed  population,  and  to  some  extent  in  the  ranks  of  organ- 
ized labor.  A  labor  leader  recently  stated  that  many  members 
of  local  unions  have  been  carried  away  by  the  doctrines  of  bol- 
shevism.16  Similar  observations  have  been  made  by  other  labor 
representatives.  Conservative  labor  forces  are  refusing  to  accept 
a  reduction  in  wages  without  reference  to  the  level  of  prices, 
and  are  demanding  general  establishment  of  the  eight-hour  day 
and  other  reforms.  Moreover,  American  labor's  reconstruction 
programs  contain  definite  demands  for  legislation  making  it  a 
criminal  offense  for  employers  to  interfere  with  the  rights  of 
employees  to  organize,  for  laws  limiting  the  tasks  of  women 
workers,  establishment  of  public  ownership  of  public  utilities, 
removal  of  all  restrictions  on  free  speech,  abolition  of  child  labor, 
prevention  of  unemployment,  restriction  of  immigration,  demo- 
cratic control  of  industry,  etc.17  American  labor,  like  labor  the 
world  over,  is  demanding  greater  freedom  and  larger  economic, 
political  and  cultural  opportunities. 

How  will  American  capital  accept  these  larger  demands  of 
labor?  Will  employers  persist  in  their  opposition  to  collective 
bargaining,  a  shorter  work-day,  minimum  wage  scales,  abolition 
of  child  labor,  etc.  ?  With  the  great  lesson  of  cooperation  which 
the  war  has  taught  us,  it  is  difficult  to  believe  that  the  strong 

!6  Mr.  William  McHugh,  acting  president  of  the  Printing  Pressmen  and 
Assistants'  Union,  at  the  annual  convention  of  American  Newspaper  Pub- 
lishers' Association,  New  York  City,  April  24,  1919. 

"  See  the  constitution  and  platform  of  the  recently  organized  Labor  party 
of  Cook  County,  Illinois,  and  the  State  Labor  Party,  published  in  the  New 
Majority,  January,  1919;  also  the  Eeconstruction  Program  of  the  American 
Federation  of  Labor. 


236  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [450 

individualism  which  has  often  been  the  basis  of  our  laws  and  the 
chief  determinant  of  our  political  and  industrial  policies  will 
continue  to  prevail  in  industrial  relations.  Nevertheless,  our 
traditional  adherence  to  absolute  liberty  of  action  will  not  pass 
out  of  existence  immediately.  Many  employers  will  still  insist 
upon  the  right  to  run  their  business  as  they  please,  and  will 
resent  all  efforts  of  organized  labor  and  of  the  government  to  in- 
fringe upon  that  right.  Limitations  are  repugnant  to  the 
typical  American  mind  —  this  is  the  psychology  underlying  our 
industrial  situation.  Business  enterprises  resent  restrictions 
whether  imposed  by  the  state  or  by  labor  organizations.  Labor 
is  equally  resentful  of  limitations  imposed  by  capital  and  man- 
agement. This  likemindedness  in  the  matter  of  personal  liberty 
is  largely  responsible  for  the  unpleasant  relations  that  frequent- 
ly arise  between  capital  and  labor.  The  truth  is  that  both  cap- 
ital and  labor  have  recognized  and  defended  their  constitutional 
guaranties  and  so  called  natural  rights  without  taking  cog- 
nizance of  the  fundamental  obligations  and  responsibilities  that 
the  possession  of  these  rights  impose.  Happily,  there  are  numer- 
ous evidences  of  a  new  conception  of  rights  in  regard  to  indus- 
trial relations,  one  which  discards  the  postulate  that  rights  are 
absolute  and  accepts  the  interpretation  of  their  relativity.  This 
new  interpretation  18  promises  to  be  the  guiding  spirit  in  our 
post-war  readjustment  of  industrial  control.  If  it  can  be  made 
the  working  philosophy  of  industrial  relations,  as  it  is  being 
made  the  ruling  principle  for  international  political  relations, 
much  will  have  been  done  to  eliminate  the  causes  of  unrest  and 
revolution. 

In  his  address  at  Rome,  January  3,  1919,  President  Wilson 
stated :  " .  .  .  after  all,  what  the  world  is  now  seeking  to  do 
is  to  return  to  the  paths  of  duty,  to  turn  from  the  savagery  of 
interests  to  the  dignity  of  the  performance  of  right,"  or,  "In 
other  words,  our  task  is  no  less  colossal  than  this:  to  set  up  a 
new  international  psychology,  to  have  a  new  atmosphere. ' ' 

In  these  expressions  the  President  has  suggested  for  the 
political  relations  of  the  nations  what  has  long  been  necessary 

!8  We  do  not  mean  to  imply  here  that  the  conception  of  the  relativity  of 
rights  is  generally  new,  but  its  application  to  industrial  relations  is  of 
recent  origin. 


451]  CONCLUSION  237 

in  the  relations  of  management  and  labor,  namely,  a  turning 
away  from  the  savagery  of  self-interest  and  the  possession  of  a 
new  mental  attitude,  a  new  psychology,  conducive  to  an  atmos- 
phere of  mutual  trust  and  confidence,  which  are  the  foundations 
of  cooperation  and  progress.  To  change  men's  activities  it  is 
first  necessary  to  change  their  ideas  of  conduct.  Insistence  upon 
absolute  rights  must  give  place  to  recognition  of  the  rights  of 
other  members  in  society  and  the  prerogatives  of  the  group.  So 
long  as  capital  refuses  to  appraise  properly  the  dignity  and 
rights  of  the  laborer  and  workmen  fail  to  take  cognizance  of  the 
rights  of  capital  and  management,  we  shall  have  industrial 
warfare,  more  continuous  and  more  destructive  than  interna- 
tional conflicts.  As  already  suggested,  there  are  numerous  signs 
of  a  new  appraisal  of  human  values  in  the  industrial  process, 
and  capital  and  labor  are  more  and  more  clearly  seen  as  collec- 
tive terms  for  bodies  of  human  individuals  with  continuously 
increasing  wants,  cumulative  aspirations,  and  varying  emotions, 
desirous  of  greater  satisfactions  here  and  now  but  not  neces- 
sarily forgetful  of  the  desires  of  others.  This  widening  circle 
of  wants  and  desires  is  the  parent  of  discontent  and  ambition, 
and  these  in  turn  are  the  antecedent  phenomena  out  of  which  a 
conflict  of  interests  develops  in  the  sphere  of  industrial  relations 
as  in  the  world  of  international  political  relations. 

These  are  days  of  a  new  and  broad  evolution  of  the  rights  of 
nations,  especially  of  the  weaker  ones,  and  the  tendency  is 
toward  the  guaranty  of  independence  and  full  sovereignty  for 
all  peoples  capable  of  self-determination  and  self-government. 
Democracy  is  the  dynamic  of  present  day  political  and  indus- 
trial philosophy  and  action.  It  has  been  prescribed  for  a  world 
suffering  from  conflicting  political  ambitions  and  for  the  pre- 
vention of  war.  Everywhere  this  new  sovereignty  of  democracy 
is  being  proclaimed  —  it  is  the  crystallized  thought  of  what  men 
proclaim  as  a  new  era.  Something  akin  to  this  sovereignty  of 
democracy  in  political  relations  must  be  established  in  the  gov- 
ernment of  industry.  Industrial  conflict  is  a  symptom  of  the 
disease  of  self-interest  in  the  operation  and  management  of  in- 
dustry, and  the  remedy  would  seem  to  lie  in  democratic  control 
of  the  conditions  of  employment.  Conservative  labor  forces  in 
the  United  States  deem  it  "essential  that  the  workers  should 


238  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [452 

have  a  voice  in  determining  the  laws  within  industry  and  com- 
merce which  affect  them,  equivalent  to  the  voice  which  they  have 
as  citizens  in  determining  the  legislative  enactments  which  shall 
govern  them,"19  and  it  is  "of  paramount  importance  that 
Labor  shall  be  free  and  unhampered  in  shaping  the  principles 
and  agencies  affecting  the  wage-earners'  condition  of  life  and 
work. " 20  It  is  no  alarmist  view,  but  rather  a  simple  statement 
of  fact,  that  confusion  and  discontent  are  threatening  revolution 
and  that  abuses  tolerated  yesterday  will  be  intolerable  tomorrow, 
for  awakened  peoples  are  in  reality  conscious  of  a  new  hope  for 
a  larger  freedom.  If  America  is  to  avoid  the  spread  of  bolshev- 
ism  and  other  forms  of  anarchistic  radicalism  in  the  ranks  of  her 
forty  odd  millions  of  gainfully  employed  persons,  a  co-equal 
voice  in  the  government  of  industry  is  a  necessary  prerequisite. 
This  is  the  conclusion  not  only  of  the  representatives  of  labor 
and  capital  in  the  United  States  but  also  of  other  advanced 
nations.21 

No  better  analysis  of  the  problem  of  industrial  relations  and 
the  necessary  readjustment  along  the  lines  of  democratic  con- 
trol of  the  conditions  of  employment  has  been  given  to  us  than 
the  following  conclusion  of  the  President's  Mediation  Commis- 
sion: 

Broadly  speaking,  American  industry  lacks  a  healthy  basis  of  relation- 
ship between  management  and  men.  At  bottom  this  is  due  to  the  insistence 
of  employers  upon  individual  dealings  with  their  men.  Direct  dealings  with 
employees  organizations  is  still  the  minority  rule  in  the  United  States.  In 
the  majority  of  instances  there  is  no  joint  dealing,  and  in  too  many  in- 
stances employers  are  in  active  opposition  to  labor  organizations.  This 
failure  to  equalize  the  parties  in  adjustments  of  inevitable  industrial  con- 
tests is  the  central  cause  of  our  difficulties.  There  is  a  commendable  spirit 

is  Reconstruction  Program  of  the  American  Federation  of  Labor,  p.  2. 

20  Ibid.,  p.  15. 

21  For  methods   of   introducing   democratic  control   of   industry   see  the 
following:      The  Personal  Eelation  in  Industry,  The  Colorado  Plan,  and 
Brotherhood  of  Men  and  Nations,  by  John  D.   Rockefeller,  Jr.;   Man  to 
Man  —  the   Story   of  Industrial   Democracy,   by   John   Leitch ;    Report   of 
the  Employers'  Industrial  Commission  of  the  U.  S.  Department  of  Labor 
on  British  Labor  Problems;  English  Reconstruction  Reports,  including  the 
Whitley  Committee  Eeport,  Memorandum  on  the  Industrial  Situation  After 
the  War   (Garton  Foundation) ;   Reports  of  the  Conferences  of  Plymouth 
and  Cornwall;  Eeport  of  Inquiry  as  to  Works  Committees,  by  the  Minister 
of  Labor;  The  Shop  Committee,  by  William  Leavitt  Stoddard. 


453]  CONCLUSION  239 

throughout  the  country  to  correct  specific  evils.  The  leaders  in  industry 
must  go  further,  they  must  help  to  correct  the  state  of  mind  on  the  part  of 
labor;  they  must  aim  for  the  release  of  normal  feelings  by  enabling  labor 
to  take  its  place  as  a  cob'perator  in  the  industrial  enterprise.  In  a  word,  a 
conscious  attempt  must  be  made  to  generate  a  new  spirit  in  industry.22 

This  new  spirit  which  is  being  generated  in  industry  is  doing 
much  to  eliminate  unrest,  radicalism,  and  revolutionary  tenden- 
cies, and  to  usher  in  a  new  era  in  industrial  relations.  Out  of 
the  better  understanding  between  capital  and  labor  which  this 
new  point  of  view  should  develop  there  will  inevitably  come  a 
higher  participation  by  labor  in  the  determination  of  the  condi- 
tions of  employment  and  in  the  fruits  of  its  toil.23  This  will 
make  unnecessary  a  dictatorship  by  the  proletariat  and  put  an 
end  to  the  autocracy  of  capital.  Autocratic  management  of  in- 
dustry, whether  by  labor  or  capital,  is  undesirable;  democracy 
is  the  only  solid  foundation  of  permanent  industrial  peace. 

Generally  speaking,  then,  the  experience  of  the  United  States 
in  dealing  with  the  important  problems  of  industrial  relations 
during  the  world  war  suggests  the  following  remedies:  Contin- 
uation of  centralized  and  coordinated  labor  administration ; 24 
adoption  and  application  of  uniform  principles  and  standards 
to  guide  administrative  agencies  in  regulating  the  conditions  of 
employment;  the  introduction  of  democratic  government  in  in- 
dustry with  a  special  plan  of  representation  adapted  to  the  needs 
and  conditions  of  given  industries  and  establishments ; 25  provi- 

22  Sixth  Annual  Eeport  of  the  Secretary  of  Labor,  1918,  p.  24. 

23  The  writer  does  not  mean  to  imply  that  democratic  control  is  the  final 
solution  of  the  labor  problem,  but  he  does  believe  that  such  control  is  the 
next  step  in  the  evolution  of  industrial  relations. 

24  Coordination  of  labor  administration  should  not  involve  the  concen- 
tration of  control  in  the  hands  of  the  federal  government,  but  rather  cor- 
relation of  effort  between  the  administrative  agencies  within  each  division 
of  government  —  local,  state,  and  national  —  and  further  correlation  and 
cooperation  between  the  federal,  state  and  local  governmental  bodies  in  mat- 
ters that  concern  labor  administration.     State  and  local  arbitration  boards, 
employment  services,  etc.,  can  cooperate  to  mutual  advantage  with  the  fed- 
eral agencies  in  meeting  successfully  the  problems  that  arise. 

as  This  does  not  involve  state  ownership  of  industry  and  industrial  man- 
agement by  the  workers  as  suggested  by  the  Guild  Socialists.  Conservative 
labor  forces  in  America  are  asking  merely  for  a  voice  in  the  determination 
and  regulation  of  conditions  of  employment,  and  it  is  in  this  latter  sense 
that  we  have  used  the  term  ' '  industrial  democracy. ' ' 


240  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [454 

sion  for  giving  to  labor  a  share  in  the  excess  earnings  of  indus- 
try ;  free  play  for  the  creative  impulse  in  industry ;  and  the  gen- 
eration of  a  new  spirit  between  management  and  labor  —  a  spirit 
of  cooperation,  democracy,  and  good-will.26 


28  These  measures  have  been  dealt  with  in  preceding  pages,  see  Chapters  v 
and  vi. 


BIBLIOGRAPHY 

ALLEN,  LESLIE  H.,  Industrial  Housing  Problems.    Boston,  1917. 

AMERICAN  ASSOCIATION  FOR  INTERNATIONAL  CONCILIATION.  Prob- 
lems of  Reconstruction,  No.  135.     New  York,  1919. 

AMERICAN  FEDERATION  OF  LABOR.    Report  of  the  Proceedings  of 
the  Thirty-Seventh  Annual  Convention.    Washington,  1917. 

Report  of  the  Proceedings  of  the  Thirty-Eighth  An- 
nual Convention.     Washington,  1918. 

Reconstruction  Program.     Washington,  1919. 


American  Industries,  Vol.  XIX,  No.  6  (January,  1919)  and  No. 
9  (April,  1919).  New  York,  1919. 

American  Labor  Legislation  Review,  Vol.  VIII,  1918.  New 
York,  1918. 

Annals  of  the  American  Academy  of  Political  and  Social  Sci- 
ence, Vol.  LXXXI,  No.  170  (January,  1919),  and  Vol. 
LXXXII,  No.  171  (March,  1919),  Philadelphia,  1919. 

ARMY  ORDNANCE  INDUSTRIAL  SECTION.  Handbook  of  Informa- 
tion Concerning  Governmental  Boards  and  Departmental  Sec- 
tions Dealing  with  Labor.  Washington,  1918. 

CLEVELAND  AND  SCHAFER,  Democracy  in  Reconstruction.  New 
York,  1919. 

COLE,  G.  D.  H.,  Labor  in  Wartime.    London,  1915. 

Recent  Developments  in  the  British  Labor  Movement, 

in  The  American  Economic  Review,  Vol.  VIII,  No.  3  (Septem- 
ber, 1918).  Ithaca,  New  York,  1918. 

COMMITTEE  ON  PUBLIC  INFORMATION.  Official  Bulletin,  Vol.  1 
and  Vol.  2.  Washington,  1917,  1918. 

COUNCIL  OF  NATIONAL  DEFENSE.  First  Annual  Report.  Wash- 
ington, 1917. 

Second  Annual  Report.     Washington,  1918. 

HAYES,  E.  C.,  The  Social  Control  of  the  Acquisition  of  Wealth, 
reprinted  from  the  Publications  of  the  American  Sociological 
Society,  Vol.  VIII.  Chicago,  1917. 

JOINT  COMMISSION  ON  SOCIAL  SERVICE  OF  THE  PROTESTANT  EPIS- 
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241 


242  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [456 

Bulletin,  No.  5.     New  York,  1918. 

Journal  of  the  American  Institute  of  Architects,  Vol.  5.    Wash- 
ington, 1918. 
KING,  W.  L.  MACKENZIE,  Industry  and  Humanity.    New  York, 

1918. 
LEITCH,  JOHN,  Man-to-Man,  The  Story  of  Industrial  Democracy. 

New  York,  1919. 

LESCOHIER,  DON  D.,  The  Labor  Market.    New  York,  1919. 
LIPPINCOTT,   ISAAC,   Problems   of  Reconstruction.     New   York, 

1919. 
Mining  Congress  Journal,  Vol.  IV,  No.  12   (December,  1918). 

New  York,  1918. 
National  Civic  Federation  Review,  Vol.  IV,  No.  12   (April  10, 

1919).     New  York,  1919. 
NATIONAL  CIVIL  LIBERTIES  BUREAU,  Memorandum  Regarding  the 

Persecution  of  the  Radical  Labor  Movement  in  the  United 

States.    New  York,  1919. 
NATIONAL   INDUSTRIAL   CONFERENCE   BOARD.      The    Eight-Hour 

Day  Defined,  Research  Report  No.  11.     Boston,  1918. 
Strikes  in  American  Industry  in  Wartime,  Research 

Report  No.  3.    Boston,  1918. 

NATIONAL  WAR  LABOR  BOARD.     Award  and  Findings.     Wash- 
ington, 1918,  1919. 
NATIONAL  WOMEN  's  TRADE  UNION  LEAGUE.    Bulletins.    Chicago, 

1918. 
Quarterly   Journal    of   Economics,    Vol.    XXXII    (November, 

1917).    Cambridge,  1917. 
KOCKEFELLER,  JOHN  D.,  JR.,  Brotherhood  of  Men  and  Nations. 

New  York,  1919. 

The  Colorado  Industrial  Plan.    New  York,  1916. 

The  Personal  Relation  in  Industry.    New  York,  1917. 

Representation  in  Industry.    New  York,  1918. 

SENATE  DOCUMENT,  No.  248,  65th  Congress,  2nd  session.    Profi- 
teering.   Washington,  1918. 

Survey,  The,  Vol.  XLI,  No.  22   (March  1,  1919).     New  York, 

1919. 

-  Vol.  XLII,  No.  1  (April  5,  1919)  and  No.  2  (April  12, 

1919).     New  York,  1919. 
UNITED  STATES  COMMISSION  ON  INDUSTRIAL  RELATIONS,  Final 

Report.    Washington,  1916. 


457]  BIBLIOGRAPHY 

UNITED  STATES  DEPARTMENT  OF  LABOR.    Fifth  Annual  Report  of 
the  Secretary  of  Labor.    Washington,  1917. 

Sixth    Annual    Report    of   the    Secretary    of    Labor. 

Washington,  1918. 

Seventh  Annual  Report  of  the  Secretary  of  Labor. 


Washington,  1919. 
Annual  Reports  of  the  Commissioner  General  of  Im- 


migration, 1917,  1918,  1919. 
U.  S.  Bureau  of  Labor  Statistics,  Monthly  Labor  Re- 


view, Vol.  VI,  VII,  VIII.    Washington,  1917,  1918,  1919. 
Children 's  Bureau.    Sixth  Annual  Report  of  the  Chief 


of  the  Children's  Bureau.     1918. 
Children's  Bureau.     Child  Labor  in  Warring  Coun- 


tries, Publications,  No.  27.    Washington,  1917. 

Children's  Bureau.    The  States  and  Child  Labor,  Pub- 


lications, No.  58.     Washington,  1919. 
U.  S.  Employment  Service.     Weekly  Bulletin,  Vol.  I. 


Washington,  1918. 
Information    and    Education    Service.      Employment 


Questions.    Washington,  1918. 

U.  S.  RAILROAD  ADMINISTRATION.    Bulletin  No.  4.    Washington, 
1918. 

General  Order  No.  27.     Washington,  1918. 

Report  of  the  Railroad  Wage  Commission  to  the  Direc- 
tor General.     Washington,  1918. 

U.   S.   SHIPPING  BOARD.     First  Annual  Report.     Washington, 
1917. 

Second  Annual  Report.    Washington,  1918. 

Reprint  of  the  Memorandum  on  the  Industrial  Situa- 
tion after  the  War;  Garton  Foundation.     Philadelphia,  1919. 

Reprint  of  the  Report  of  an  Inquiry  as  to  the  Works 


Committee  made  by  the  British  Minister  of  Labor.    Philadel- 
phia, 1919. 
Works    Committees    and    Joint    Industrial    Councils. 


Philadelphia,  1919. 

Labor   Adjustment    Board.      Decision    as   to    Wages, 


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Great  Lakes  Shipyards.    Washington,  1918. 
Labor   Adjustment   Board.     Decision    as   to   Wages, 


244  DEVELOPMENT  OF  WAR  LABOR  LEGISLATION  [458 

Hours,  and  Conditions  in  the  Pacific  Coast  Shipyards.  Wash- 
ington, 1918. 

VAN  HISE,  CHARLES  K.,  Conservation  and  Regulation  in  the 
United  States  During  the  World  War.  "Washington,  1917. 

WILLOUGHBY,  WILLIAM  F.,  Government  Organization  in  War 
time  and  After.  New  York,  1919. 


INDEX 


Absentee  ownership,  105,  152 

American  Alliance  for  Labor  and 
Democracy,  47 

American  Federation  of  Labor,  45, 
150 

Apprentice  system,  115 

Arbitration,  112,  115 

Army  Ordnance  Industrial  Service 
Section,  133n,  135 

Arsenals  and  Navy  Yards  Commis- 
sion, 139 

Attitude  of  American  labor,  28,  48, 
49,  108 

Autocratic  control,  106,  153 

Bisbee   deportations,    154 

Board     of     Railroad     Wages     and 

Working   Conditions,   147,   148 
Bonus,  36,  62,  70,  149 
Boys'    Working    Reserve,    185,    187, 

195,  197 

Chapin,  R.  C.,  99 

Child  labor,  136,  137,  232;  see  also 

Women  and  children 
Civilian  Insignia  Service,  161,  221 
Coercion,  110 

Collective  Bargaining,  137,  152,  165 
Colored  laborers,  60,  147 
Commission    on    Living    Conditions, 

221,  222 

Competition  for  workmen,  53,  101 
Conciliation,    86,    135;    Division   of, 

106,  124,  126,  210 
Conditions  of  Labor  Service,  161 
Contracts,  government,  133,  137 
Coordination,  157-223,  174 
Cost  of  living,  89-99,  141,  142,  171 
Council  of  National  Defense,  19,  64, 

128,   131,  150,  187 


Decentralized  Labor  Administration, 

123-156 
Demands  of  labor,  39,  101,  102,  108, 

115 
Director  General  of  Railroads,  145- 

147 

Discrimination,  109,  110,  143 
Division  of  Economics,  212 
Division   of   Information,    127,    178, 

185,  187;  see  also  Information  and 

Education  Service 
Division  of  Military  Railways,  195 

Efficiency  of  labor,  38,  39,  66,  68 

Efficiency  of  women  workers,  71- 
73 

Eight-hour  day,  62,  76,  77,  102-104, 
147,  153,  166,  171 

Emergency  Construction  Adjust- 
ment Commission,  133-135 

Emergency  Fleet  Corporation,  22, 
200,  204 

Employment  agencies,  see  U.  S.  Em- 
ployment Service 

Employers'  associations,  106 

Enemy  propaganda,  29 

Erdman  Act,  124 

Farm  labor,   98,   100,   101,   128,   182 
Farm  Service  Division,  187,  197 
Federal  Trade  Commission,  107 
Finance  Corporation,  23 
Food  Administration,  20 
Fuel  Administration,  20 ;   labor  pol- 
icy of,  148,  149 
Frankfurter,  Felix,  151,  157,  175 


Gompers,    Samuel,    quoted,    26,    103, 
128,  129,  134,  140,  150 


245 


246 


DEVELOPMENT  OF  WAR  LABOR  LEGISLATION 


[460 


Harness    anil    Saddlery    Adjustment 

Commission,   138 
Hours    of    labor,    76,    77,    101,    102, 

109,  136,  137,  165 
Housing  and  transportation,  60,  63- 

66,  109,  161,  208,  209,  222 

Immigration,  31,  54,  178n;  Bureau 
of,  127,  178,  184 

Income  tax  returns,  33 

Index  numbers  of  wholesale  and  re- 
tail prices,  90-93 

Index  numbers  of  wages  and  prices, 
96 

Industrial  disputes,  86,  88,  104,  106, 
143,  152,  164,  169,  170 

Industrial  relations,  224,  233 

Industrial  Workers  of  the  World,  41 

Information  and  Education  Service, 
161,  211,  212,  215;  see  also  Divi- 
sion of  Information. 

Internationalism,    108,    153 

International  Longshoremen's  Asso- 
ciation, 143 

Investigation  and  Inspection  Service, 
161,  219 

Labor  Adjustment  Service,  210 
Labor  conscription,  41-43 
Labor  recruitment,  191,  192 
Labor   safeguards,   75-78,   131,   136, 

152,  166 

Labor  standards,  129,  137,  165,  166 
Labor  stealing,  101 
Labor  turnover,  59-61,  64,  153,  178 
Lever  Act,  20 
Living    Conditions,    Commission    on, 

221,  222 

Lockouts,  81-84,  165 
Loyalty  of  labor,  43,  45,  45n,  46,  47, 

116,  117 

Marshall,   L.   C.,   160n,   175n. 
Meat  packing  industry,  107,  152 
Mediation   Service,   126 
Minimum     of     subsistence     (family 
budgets),   99,    100 


Minimum  wage  scale,  112,  171 
Mining  Division,  200 

National  Committee  on  Labor,  129 

National  Industrial  Conference 
Board,  104,  163 

National  League  of  Woman's  Ser- 
vice, 182 

National  War  Labor  Board,  104, 
109,  110,  114,  163-169,  173,  174, 
177,  178,  210,  222,  231 

Negro  Division,   199,  219 

Newlands  Act,   124,  125,  150 

Night-work,   109 

Non-partisan  League,  41 

Opposition  to  unions,  111 
Ordnance  service,  133n,  135,  161 
Overtime,  109,  147 

Permit  system,  113 

Personnel   Service,   161 

Postal  Telegraph  Commercial  Cable 

Company,  169 

President 's    Mediation    Commission, 
.   30,  39,  67,  102,  103,  104,  106,  108, 

116,  150,  151-154 
President  Wilson,  148,  149,  150,  158, 

159,  164,  168,  169,  190,  203,  236 
Production,  36,  102,  108,  163,  166 
Profiteering,  106-108,  153 
Profits,   107 

Quartermaster  General,  136n,  137, 
138 

Railroad  Wage  Commission,  92,  145 
Eailway  Boards  of  Adjustment,  144 
Eents,  94,  95 
Eepresentation    of    labor,    26,    106, 

163,  165 

Eight  to  organize,  111,  165,  171 
Eoosevelt,  F.  D.,  139,  175n 

Sabotage  Act,  40 

Secretary  of  Labor,  151,  163,  169, 
174,  187,  190,  193,  194,  207,  220, 


461] 


INDEX 


247 


221;   Quoted:   37,  43,  58,  60,  157, 
160,  181,  195 

Secretary  of  War,  134,  135,  138 
Shipbuilding       Labor       Adjustment 

Board,  139 

Skilled  Labor  Section,  188 
Smith  and  Wesson  Company,  170 
Socialists,   29,   44 

Soeio-industrial  conditions,  109,  131 
State  Councils  of  Defense,   187 
Stevedores  and  Marine  Workers  Di- 
vision, 199 
Strikes,  39,  79-86,  165 

Taft,  William  H.,  162n 
Training  and   Dilution   Service,  57, 
68,   215,   217 

Unionism,  87,  J.52 

U.  S.  Board  of  Mediation  and  Con- 
ciliation, 124,  125,  130,  149 

U.  S.  Bureau  of  Labor  Statistics, 
93,  97,  99 

U.  S.  Commission  on  Industrial  Re- 
lations, 32 

U.  S.  Dept.  of  Agriculture,  182 

U.  S.  Department  of  Labor,  58,  124, 
125,  127,  132,  165,  174,  178,  182, 
185,  190,  202,  203,  220 

U.  S.  Employment  Service,  55-58, 
74,  178-205,  216 

U.  S.  Housing  Corporation,  209,  222 

U.  S.  Public  Service  Reserve,  181, 
185,  187,  194,  195 

U.  S.  Railroad  Administration,  21, 
63,  144,  199,  204,  207 

U.  S.  Shipping  Board,  22,  38,  42, 
62,  65,  93,  139,  179,  199,  208 

U.  S.  Steel  Corporation,  107 

Unskilled  labor,   87,  152 

Van  Kleeck,  Mary,  175n,  206,  207n 


Vestibule  Schools,  70 

Wage  earners,  number  and  character 

of,  36,   36n,   73,  74,   116 
Wage    increases,    62,    63,    95n,    108, 

147,    171 
Wages,  31,  32,  60,  69,  95-101,  109, 

112,   115,   130,   136,   139,   140-142, 

144,   147,   165,   166 
Wage  scales,  inequalities  of,  61,  62, 

72,    100,   101 
Walsh,  F.  P.,  162n 
Walsh,  Sen.  T.  J.,  40 
War  Department,  133,  135,  138 
War  Industries  Board,  19,  20,  133, 

202 
War  Labor  Administration  Act,  215, 

218,  219 
War  Labor  Administration  Cabinet, 

174,  174n 
War  Labor  Conference  Board,  163, 

165 
War  Labor  Policies  Board,  174-178, 

175n,  193,  206,  231 
War  Placements,  200 
War  Risk  Insurance  Bureau,  22,  22n 
War  Trade  Board,  22 
Wealth  and  incomes,  distribution  of, 

32-35 

Welfare  work,  70,  143 
Western  Union  Telegraph  Company, 

169 

Whitley  plan,  212 
Wilson,   William   B.,   151;    see   also 

Secretary   of   Labor. 
Woman    in    Industry    Service,    161, 

198,   205,   206,  208 
Women  and  children,  68-70,   73,  74, 

76,  112,  130,  136,  166,  171 
Women's   Division,   187,   198 
Working  Conditions  Service,  218 
Workingmen  's  Council,  47 


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111.  All  communications  concerning  sale  or  subscription,  or  of  an  editorial 
nature,  should  be  addressed  to  the  Editor  of  the  University  Studies,  Uni- 
versity of  Illinois,  Urbana,  HI.  The  subscription  price  of  each  series  u 
three  dollars  a  year.  The  prices  of  individual  monographs  are  shown  in 
the  lists  given  above. 


V. 


.  IIRR/\RY  FACILITY 

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